Capital Structure, Enterprise Value and Equity

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

MAY 3, 2023

The DDM is more grounded because it’s based on the company’s actual distributions and potential future value. And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation).

Dividends

Dividends Terminal Value Enterprise Value Equity

Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Valutico

DECEMBER 15, 2022

Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. Wind farms are valued at €0.8m – €1.2m

Precedent Transaction Analysis

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value

Your Guide to Valuing a Company Using the Multiples Approach

Valutico

DECEMBER 15, 2022

Example: Here’s an example of a particular metric you might use: In order to determine the Enterprise Value of the business, you find the EBITDA from the business you’re valuing, and then multiply this by the EBITDA multiple observed from the other comparable companies. Wind farms are valued at €0.8m – €1.2m

Precedent Transaction Analysis

Precedent Transaction Analysis EBITDA Comparable Company Analysis Enterprise Value

SANUWAVE Health, Inc., a Leading Provider of FDA Approved Next-Generation Wound Care Products, Enters into a Merger Agreement with Sweat Equity Partners and Mercury Life Sciences-affiliated SEP Acquisition Corp., a Nasdaq-Listed Company

Benzinga

AUGUST 23, 2023

million from the SPAC sponsor converting a loan into equity on the same terms as the PIPE. million of capital has already been committed. · This funding is expected to be anchored by investors affiliated with Sweat Equity Partners and Mercury Life Sciences. million of capital has already been committed, including $7.0

Equity

Equity Enterprise Value Capital Structure EBITDA

Tactical Resources Provides Additional Information Regarding Its Proposed Business Combination With Plum Acquisition Corp. III

Benzinga

AUGUST 28, 2024

The exchange ratio is based on a pre-transaction equity value of Tactical Resources of US$500 million. For illustrative purposes only, based on the Company's current capitalization structure, the exchange ratio would be 1.0477 Pubco Shares received for each Company Share held.

Enterprise Value

Enterprise Value Equity Financing Equity Net Debt

M&A Terms Every Business Owner Should Know

Class VI Partner

JULY 28, 2021

You may hear Asset Value used in place of Book Value, but this is not precisely correct because Book Value includes not only Asset Value, but also subtracts the value of liabilities of a company. It is typically the highest risk/highest potential return portion of a company’s capital structure.

Book Value

Book Value Equity Enterprise Value Fair Market Value

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

Valutico

MAY 6, 2024

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

Discounted Cash Flow

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

ZeroFox to be Acquired by Haveli

Benzinga

FEBRUARY 6, 2024

(NASDAQ: ZFOX ) ("ZeroFox"), a leading provider of external cybersecurity, today announced that it has entered into a definitive agreement to be acquired by Haveli Investments, a technology-focused private equity firm, in an all-cash transaction with an enterprise value of approximately $350 million.

Private Equity Firm

Private Equity Firm Capital Structure Enterprise Value Finance

Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

OCTOBER 20, 2022

Ce = Cost of Equity. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Ce = Cost of Equity. E = Equity . Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Therefore, we can put in the following values: Equity.

Discounted Cash Flow

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

Company Valuation Methods—Complete List and Guide

Valutico

SEPTEMBER 22, 2023

This method provides insights into how the market values comparable companies in merger or acquisition scenarios. iii) Market Capitalization Market capitalization is a simple market-based method that calculates a company’s value by multiplying its current stock price by the number of outstanding shares.

Discounted Cash Flow

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach

Triton International to be Acquired by Brookfield Infrastructure in a $13.3 Billion Take-Private Transaction

Benzinga

APRIL 12, 2023

("BIP") (NYSE: BIP , TSX: BIP ), through its subsidiary Brookfield Infrastructure Corporation ("BIPC") and its institutional partners (collectively, "Brookfield Infrastructure"), jointly announce a definitive agreement for Triton to be acquired in a cash and stock transaction valuing the Company's common equity at approximately $4.7

Total Shareholder Return

Total Shareholder Return Capital Structure Enterprise Value Dividends

Private Company Valuations—A Complete Guide

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

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value

Private Company Valuations—A Complete Guide

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

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value

The Role of Financial Projections in Business Valuation

Equilest

MAY 24, 2023

Balance Sheet Forecasts Balance sheet forecasts outline the expected assets, liabilities, and equity of a company at a future date. They provide insights into the financial position, capital structure, and overall worth of the business.

Business Valuation

Business Valuation Discounted Cash Flow Comparable Company Analysis Net Present Value

Power & Utilities Investment Banking: How to Turn Yourself into an Electrified ESG Warrior

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. It’s safe to say that they have encouraged more deal activity.

Banking

Banking Equity Book Value Capital Structure

Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

FEBRUARY 27, 2023

To fund the business, you can either use borrowed money (debt) or owner's funds (equity), and while both are sources of capital, they represent different claims on the business. Even government-owned businesses fall under its umbrella, with the key difference being that equity is provided by the taxpayers.

Equity

Equity EBITDA Start-ups Net Debt

Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

OCTOBER 25, 2022

Since a business can raise capital from owners (equity) and lenders (debt), the free cash flows that you compute can be to just the equity investors in the business, in which case it is free cash flow to equity , or to all capital providers in the business, as free cash flow to the firm.

Dividends

Dividends EBITDA Equity Start-ups

Business Valuation Zone

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained

Trending Sources

Your Guide to Valuing a Company Using the Multiples Approach

SANUWAVE Health, Inc., a Leading Provider of FDA Approved Next-Generation Wound Care Products, Enters into a Merger Agreement with Sweat Equity Partners and Mercury Life Sciences-affiliated SEP Acquisition Corp., a Nasdaq-Listed Company

Tactical Resources Provides Additional Information Regarding Its Proposed Business Combination With Plum Acquisition Corp. III

M&A Terms Every Business Owner Should Know

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

ZeroFox to be Acquired by Haveli

Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Company Valuation Methods—Complete List and Guide

Triton International to be Acquired by Brookfield Infrastructure in a $13.3 Billion Take-Private Transaction

Private Company Valuations—A Complete Guide

Private Company Valuations—A Complete Guide

The Role of Financial Projections in Business Valuation

Power & Utilities Investment Banking: How to Turn Yourself into an Electrified ESG Warrior

Data Update 6 for 2023: A Wake up call for the Indebted?

Earnings and Cash Flows: A Primer on Free Cash Flow

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