Shuster & Co.

DECEMBER 15, 2021

Discounted cash flow analysis is an approach where the business’ cash flow is projected for the future and discounted back to today at the firm’s Weighted Average Cost of Capital (WACC). Adjusted Book Value Method. Capitalization of Earnings/Multiples of Earnings Valuation.

Discounted Cash Flow 52

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

Andrew Stolz

MAY 8, 2020

Quoted from Wall Street Oasis.com, it describes discounted cash flow (DCF) process by estimating the total value of all future cash flows (both inflow and outflow), and then discounting them (usually using Weighted Average Cost of Capital – WACC ) to find a present value of the cash flow.

Discounted Cash Flow 52

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

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

Equilest

DECEMBER 3, 2022

Evaluating companies using the DCF (Discounted Cash Flow) method requires capitalizing the Free Cash Flows to the firm (FCFF) at the appropriate discount rate. - the weighted average cost of capital (WACC). . The amount depreciated is called Depreciation.

EBIT 40

EBIT EBITDA Weighted Average Cost of Capital Discounted Cash Flow 40

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. For more insights, do have a look at our article on market multiple based valuation.

Discounted Cash Flow 52

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

Valutico

AUGUST 23, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52