Comps, Enterprise Value and Weighted Average Cost of Capital

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Comps

Enterprise Value

Weighted Average Cost of Capital

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

Valutico

MAY 6, 2024

The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

Discounted Cash Flow

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

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

Valutico

OCTOBER 20, 2022

the asset-based approach also known as the cost-based approach, and finally 3. the multiple based or ‘ comps ’ (comparable company analysis) approach. d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). What Happens When We Add the Terminal Value?

Discounted Cash Flow

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

Business Valuation Zone

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

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

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