RNC

OCTOBER 23, 2024

Share valuation helps investors and acquirers understand whether the price of a company’s stock reflects its true worth. This blog will explore the most common methods used for share valuation, especially in the context of mergers, acquisitions, and investment decisions.

Precedent Transaction Analysis 40

Precedent Transaction Analysis Price to Earnings Weighted Average Cost of Capital Comparable Company Analysis 40

RNC

JULY 13, 2023

In this blog, we will delve into seven essential concepts and terminologies related to business valuation. This approach utilizes valuation multiples, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or enterprise value-to-EBITDA (EV/EBITDA) ratio, to estimate the value of the business.

Business Valuation 52

Business Valuation Intangible Assets Fair Market Value EBITDA 52

Sun Acquisitions

NOVEMBER 17, 2023

In this blog post, we will dive into different market value methods and strategies used in M&A, shedding light on the secrets to successful M&A transactions. The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios.

EBITDA 59

EBITDA Discounted Cash Flow Intangible Assets Comparable Company Analysis 59

GCF Value

AUGUST 15, 2023

BizComps’ price to earnings multiples for liquor stores are much lower vs other databases because those multiples DO NOT include inventory. ALL databases except for Bizcomps include inventory in their price to earnings multiples unless the notes say otherwise. For this example, we will use PeerComps.

Business Valuation 52

Business Valuation Appraisal Price to Earnings Start-ups 52

Sun Acquisitions

OCTOBER 13, 2023

By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value.

Discounted Cash Flow 59

Discounted Cash Flow Book Value Liquidation Value Price to Book 59

RNC

DECEMBER 30, 2024

Analysts evaluate financial metrics such as Price-to-Earnings (P/E) ratios to estimate a realistic market value. The most commonly used methods include: Comparable Company Analysis (CCA) Comparable Company Analysis compares the target company with similar publicly traded firms.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Business Valuation Intangible Assets 52

GCF Value

JUNE 5, 2024

Favorable or unfavorable to the value of a business, that influence will not generate price-to-earnings multiples outside of normal market demand. Market Trends and Cash Flow Multiples Economic and industry trends can influence value.

Business Valuation 52

Business Valuation Appraisal Technology Price to Earnings 52

Musings on Markets

JULY 1, 2022

In the equity market, the equity risk premium is the price of risk, and its movements will track shifts in risk capital, increasing as risk capital becomes scarcer. The jump in ERP may be over stated, since the forward earnings estimates for the index, from analysts, does not seem to be showing any upcoming pain from an expected recession. )

Marketability 99

Marketability Risk Premium Start-ups Equity 99

Equilest

MARCH 17, 2022

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). We would love to hear your notes regarding our blog post. For example, a requested rate of return of 20% per year is equivalent to a multiple of 5 (1/20% = 5). EV = Result x Multiple. x250% per year. Multiple (M). 33% per year.

Business Valuation 40

Business Valuation EBIT Discounted Cash Flow EBITDA 40

GCF Value

NOVEMBER 12, 2024

This method operates on the Principle of Substitution, which states that a buyer will not pay more for an asset than the price of a similar, comparable asset. Key comparability factors include revenue, cash flow, margins, and sale prices relative to Price to Earnings (P/E) ratios. Steps to Conduct a Business Valuation 1.

Discounted Cash Flow 52

Discounted Cash Flow Business Valuation Appraisal Intangible Assets 52