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

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

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Your Guide to Valuing a Company Using the Multiples Approach

Valutico

The first is comparable company analysis (CCA), also known as “comps”. The second is precedent transaction analysis, known as “precedents” and also called a comparable transaction analysis (CTA). Not all of the necessary data is publicly available when conducting a precedent transaction analysis.

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

Valutico

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. Simplicity: Relatively easy to understand and implement.

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Company Valuation Methods—Complete List and Guide

Valutico

Market-based approaches gauge a company’s value by analyzing comparable market transactions and valuations. ii) Precedent Transactions Analysis (PTA) PTA involves analyzing past acquisition deals in the same industry to assess the valuation multiples paid by acquirers for similar companies.