Remove Comps Remove Equity Remove Precedent Transaction Analysis
article thumbnail

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). Comparable Company Analysis’, ‘CCA’, ‘Comps’). Transaction Multiples (a.k.a.

article thumbnail

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). Comparable Company Analysis’, ‘CCA’, ‘Comps’). Transaction Multiples (a.k.a.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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.

article thumbnail

29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Understanding the Concept: In essence, FCFF encapsulates the cash that can be distributed to both debt and equity holders after meeting operational needs and capital expenditures. The resulting value represents the cash available to all contributors of capital—both debt and equity. What is Free Cash Flow to Equity?