Startup Valuation Blog

NOVEMBER 16, 2021

As the name suggests Equitest is an intuitive valuation software that makes the equity valuation process simple and affordable for businesses, startups, and professionals. It uses reliable financial models, technologies, and machine learning (ML) algorithms so you can calculate, test, and evaluate your company’s equity easily and accurately.

Business Valuation 100

Business Valuation Discounted Cash Flow Appraisal Start-ups 100

Peak Business Valuation

SEPTEMBER 17, 2024

At Peak Business Valuation , we frequently use the asset approach when valuing a small business. A common method under the asset approach is The Adjusted Book Value Method. This asset approach involves adjusting the book value of a company’s assets and liabilities to reflect their current market values.

Fair Market Value 52

Fair Market Value Business Valuation Book Value Appraisal 52

Musings on Markets

JANUARY 5, 2024

Return on Equity 1. Equity Risk Premiums 2. Costs of equity & capital 4. Costs of equity & capital 1. Fundamental Growth in Equity Earnings 2. Return on Equity 2. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Beta & Risk 1. Debt Details 1.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Benzinga

DECEMBER 6, 2023

06, 2023 (GLOBE NEWSWIRE) -- Equity Bancshares, Inc. NYSE: EQBK ) ("Equity" or the "Company"), the Wichita-based holding company of Equity Bank, announced today its entry into a definitive merger agreement with Rockhold Bancorp ("Rockhold"), the parent company of the Bank of Kirksville in Kirksville, Missouri. WICHITA, Kan.,

Banking 40

Banking Equity Book Value Marketability 40

Musings on Markets

FEBRUARY 27, 2022

After paying taxes on this income, the residual amount represents net income, the final measure of equity earnings, and the basis for computing earnings per share and other widely used measures of profitability used by equity investors.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Equity 80

Equity Book Value Start-ups Corporate Finance 80

IVSC

FEBRUARY 7, 2022

Comment: The importance of (and challenges with) valuing intangibles. Jeremy Stuber is a global equity analyst at Newton Investment Management , leading on valuation and accounting issues across all sectors. Searching for stocks with low price-to-book ratios was a good indication of a potential bargain.

Discounted Cash Flow 252

Discounted Cash Flow Intangible Assets Marketability Price to Book 252

Brian DeChesare

SEPTEMBER 13, 2023

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed investing offers equity-like returns with lower risk.” Distressed assets offer non-correlated returns, similar to global macro.”

Equity 103

Equity Banking EBITDA Start-ups 103

Musings on Markets

JULY 17, 2023

In my second data update post from the start of this year , I looked at US equities in 2022, with the S&P 500 down almost 20% during the year and the NASDAQ, overweighted in technology, feeling even more pain, down about a third, during the year. trillion below their values from the start of 2022. that was lost last year.

Marketability 98

Marketability Risk Premium Start-ups Treasury 98

Brian DeChesare

JUNE 1, 2022

Power and Utilities Investment Banking Definition: In power/utilities IB, bankers advise companies that produce, transmit, and distribute electricity, natural gas, and water on raising debt and equity and completing mergers and acquisitions. For example, let’s say the company’s Rate Base is $1,000, as in the Lazard example above.

Banking 98

Banking Equity Book Value Capital Structure 98

Benzinga

JUNE 16, 2023

Customers Bancorp (NYSE: CUBI ) has acquired a $631 million venture banking loan portfolio from the FDIC at ~85% of book value. CUBI also hired 30 team members from the loan origination group to support the venture-backed growing industry from seed to late-stage. Full story available on Benzinga.com

Book Value 52

Book Value Banking Equity Marketability 52

Shuster & Co.

DECEMBER 15, 2021

In this instance, the formula accounts for the business’ total equity by calculating asset value minus total liabilities. The liquidation value method assumes that the business will cease operations and liquidate any assets. The value is based on the net cash that would be generated from the sale of assets.

Discounted Cash Flow 52

Discounted Cash Flow Book Value Liquidation Value Weighted Average Cost of Capital 52

Benzinga

JULY 18, 2023

stake in Wella for $150 million, reflecting a 4% premium to the book value of Wella as of March 31, 2023. Coty Inc (NYSE: COTY ) has entered into a binding letter of intent to sell a portion of its Wella beauty and hair care brand stake to investment firm IGF Wealth Management. Coty will sell a 3.6%

Book Value 52

Book Value Equity Marketability 52

Musings on Markets

AUGUST 19, 2024

The second is to look at the industry group or sector that a company is in, and then follow up by classifying that industry group or sector into high or low growth; for the last four decades, in US equity markets, tech has been viewed as growth and utilities as mature.

Corporate Finance 121

Corporate Finance Finance Start-ups Dividends 121

Benzinga

JULY 25, 2023

and its affiliates (the "Centerbridge Investors" and, together with the Warburg Investors, the "Investors"), which will invest an aggregate of $400 million for newly issued equity securities concurrently with, and subject to, closing of the merger. Tangible Common Equity to Total Asset Ratio of 7.2% and BEVERLY HILLS, Calif.,

Equity 40

Equity Banking Book Value Treasury 40

Equilest

FEBRUARY 24, 2024

Equity Multiplier Business Valuation Formula The equity multiplier is found using: Equity Multiplier = Current Value / EBITDA For instance, if a business has a current value of $1,000,000 and an EBITDA of $200,000, the equity multiplier would be: $1,000,000 / $200,000 = 5.

Business Valuation 40

Business Valuation Discounted Cash Flow Book Value Liquidation Value 40

ThomsonReuters

DECEMBER 7, 2023

Capitalization, which is used to reflect the long-term value of an asset , is the process of recording an expense as an asset on the balance sheet versus as an expense on the income statement. While capitalization increases assets and equity, amortization is reflected as an expense on the income statement and reduces net income.

Intangible Assets 98

Intangible Assets Book Value Start-ups Compliance 98

Valutico

SEPTEMBER 22, 2023

This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. It represents the total market value of the company’s equity.

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Musings on Markets

NOVEMBER 10, 2022

It is in pursuit of answering these questions that accountants generate financial statements, and the three most basic are: The balance sheet , which summarizes what a firm owns and owes at a point in time, as well as an estimate of what equity is worth (through accounting eyes).

Finance 97

Finance Start-ups Equity Equity Financing 97

Benzinga

DECEMBER 2, 2024

Adds scale and extends Ready Capital's core platform with UDF IV's proven land development lending platform Diversifies Ready Capital's portfolio and offers land development solution to borrowers and investors Expected to be accretive to Ready Capital's earnings and book value in 2025 UDF IV shareholders may receive up to $5.89

Book Value 40

Book Value Finance Dividends Equity 40

IBG Business

SEPTEMBER 11, 2024

That is especially true when the buyer is a private equity group or other type of “financial” buyer, which is the case in seven out of 10 deals that we have closed over the last several years. Strengthen your ratios: working capital, debt-to-equity, “quick,” price-to-earnings, return on equity, etc.

Start-ups 52

Start-ups EBITDA Equity Price to Earnings 52

Valutico

DECEMBER 15, 2022

“Wind farms are valued at €0.8m – €1.2m SaaS start-ups are valued at 10x Sales”. Equity Vs. Enterprise Multiples – Which To Use? The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

DECEMBER 15, 2022

“Wind farms are valued at €0.8m – €1.2m SaaS start-ups are valued at 10x Sales”. Equity Vs. Enterprise Multiples – Which To Use? The ratio is either related to the Equity Value or ratios related to the Enterprise Value. . An example of an equity multiple: Price / Earnings.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

MAY 6, 2024

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. The profits (after paying off the debt) are distributed among the equity investors.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Equilest

NOVEMBER 25, 2023

Understanding the Concept: In essence, FCFF encapsulates the cash that can be distributed to both debt and equity holders after meeting operational needs and capital expenditures. The resulting value represents the cash available to all contributors of capital—both debt and equity. What is Free Cash Flow to Equity?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Andrew Stolz

MAY 8, 2020

This action will cause fluctuations in the overall value of equity and debt ratio. From the above formula, we observe that the equity and debt ratio is an essential component of WACC. If equity and debt ratio fluctuates, WACC will become unstable, which in turn impacts DCF. Conclusion.

Discounted Cash Flow 52

Discounted Cash Flow Weighted Average Cost of Capital Terminal Value Net Present Value 52

Farrel Fritz

FEBRUARY 14, 2022

Quattro’s Position on Value. In its memorandum of law , Quattro argued that no trial was required because all of the evidence showed, and Rakib previously admitted, that Quattro’s equity was worthless without an additional cash infusion of tens of millions of dollars.

Book Value 59

Book Value Appraisal Business Valuation Fair Market Value 59

Appraisal Rights

AUGUST 7, 2019

The value of the holding is established by the directors, having obtained the opinion of the board, of statutory auditors as well as the legal auditor of accounts and is established taking account: of the company’s equity ; of its income producing prospects ; as well as. any market value it may have.

Appraisal 52

Appraisal Book Value Equity Marketability 52

ThomsonReuters

JUNE 15, 2021

Use of Special purpose acquisition (SPAC) vehicles have spiked over the past year because private equity and venture capital firms have excess cash they need to put to work, accounting practitioners said mid-June. These standards require companies to assess whether the warrants should be equity or liability classified.

Risk-free Rate 64

Risk-free Rate Equity Start-ups Book Value 64

Equilest

JANUARY 11, 2024

Additionally, a change in control triggers the need for PPA, exemplified when a shareholder gains substantial equity to assume controlling interest. Net Identifiable Assets This encompasses the total value of assets owned by the acquired company, minus its liabilities.

Fair Market Value 52

Fair Market Value Business Valuation Book Value Compliance 52

RNC

OCTOBER 1, 2024

Price-to-Book Ratio (P/B) This ratio compares a company’s market value to its book value (assets minus liabilities). Benchmark Valuation in Different Asset Classes Equities Equities are one of the most common asset classes where benchmark valuation is used.

Comparable Company Analysis 52

Comparable Company Analysis Price to Book Price to Earnings Book Value 52

Musings on Markets

FEBRUARY 15, 2023

It is to remedy this defect that analysts scale profits to invested capital, with equity and capital variants: In the equity version, you divide net income by book equity to estimate a return on equity, a measure of what equity investors are generating on the capital they have invested in a company.

Start-ups 52

Start-ups Equity Risk Premium Risk-free Rate 52

The Mentor Group

FEBRUARY 1, 2022

Long-term equity anticipation securities (LEAPs). Instead, they own non-operating assets such as corporate securities, LLC Interests in partnerships, private equity investments, government obligations and real estate. Some of these metrics, but not all inclusive, are the following: Return on assets and equity.

Dividends 40

Dividends Fair Market Value Equity Book Value 40

Benzinga

MARCH 28, 2024

At or immediately prior to the closing, IFH is expected to distribute its minority equity interest in Dogwood State Bank to IFH shareholders in the form of a dividend equal to approximately 0.469 shares of Dogwood State Bank for each share of IFH common stock, a value of $7.69/share and Capital Bank. and Capital Bank.

Banking 40

Banking Dividends Book Value Equity 40

Benzinga

APRIL 18, 2022

Return on average tangible common equity (1). . . The return on average tangible assets was 1.07%, compared to 1.30%, and the return on average tangible common equity was 10.31%, compared to 12.37%. million lower unrealized gains from equity method investments included in the prior quarter and $0.7 0.60. . $. 0.74. . $.

Banking 40

Banking Book Value Equity Intangible Assets 40

Benzinga

SEPTEMBER 5, 2024

Tangible book value per share dilution is projected at 12%, with an earnback period of approximately 2.9 ConnectOne projects to deliver a return on average tangible common equity of approximately 14% and an efficiency ratio of approximately 45% in 2025, Full story available on Benzinga.com

Banking 45

Banking Book Value Marketability Market Capitalization 45

Benzinga

MARCH 21, 2023

Estimated tangible book value per share dilution to First Mid is expected to be earned back in 1.9 And, while there is volatility in the equity markets for banks today, the discussions which led to today's announcement started a long time ago. million, subject to certain conditions and adjustments.

Book Value 40

Book Value Banking Equity Marketability 40