Remove Book Remove Price to Earnings Remove Weighted Average Cost of Capital
article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Asset-based methods like Adjusted Book Value, Liquidation Value, and Replacement Cost consider the worth of tangible assets. Excerpted from the book “Valuation for Mergers and Acquisitions” by Barbara S. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value.

article thumbnail

Private Company Valuations—A Complete Guide

Valutico

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.

article thumbnail

Private Company Valuations—A Complete Guide

Valutico

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.