Remove Discounted Cash Flow Remove Precedent Transaction Analysis Remove Weighted Average Cost of Capital
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.

article thumbnail

The Complete Business Valuation Formula Guide: 10 Essential Methods

Equilest

Market-Based Business Valuation Formula For a market-based calculation, use: CV = (EBITDA x 1.5) – (Current Liabilities x 0.5) Or V = (EBITDA * 1.3) / (Revenue – COGS) As an example, if a business's EBITDA is $300,000 and current liabilities are $50,000, the calculation would be: ($300,000 x 1.5) - ($50,000 x 0.5) = $425,000.

article thumbnail

Common Valuation Methods for Shares in M&A and Investments

RNC

Discounted Cash Flow (DCF) Analysis What is DCF? DCF analysis estimates the value of a company based on its future cash flows, discounted back to the present value using a specific discount rate. Here’s a look at the most popular ones of the methods of valuation for shares: 1.