Value Scope

JULY 21, 2020

There are also methods to use Beta to assess a private company, if the Guideline Public Companies selected for the analysis, the “comps,” are chose properly. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58. The re-levered Beta for the private company we were valuing was 0.56.

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

Valutico

MAY 6, 2024

The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis. Comparable Companies Analysis (CCA/Comps) Comparable Companies (Comps) Analysis involves identifying publicly traded companies in the same industry with similar growth prospects, and economic characteristics.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

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). The first is 1. Forecast cash flow.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Valutico

AUGUST 17, 2022

What data is used for the companies ‘comps’ comparisons? While the DCF also discounts future cash flows to a present value today, it does so using discount rates typically calculated using the Capital Asset Pricing Model (either Weighted Average Cost of Capital (WACC) or Cost of Equity (CoE)).

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Value Scope

SEPTEMBER 24, 2020

There are also methods to use Beta to assess a private company, if the Guideline Public Companies selected for the analysis, the “comps,” are chose properly. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58. The re-levered Beta for the private company we were valuing was 0.56.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130