Remove Enterprise Value Remove Net Present Value Remove Weighted Average Cost of Capital
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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

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

Valutico

This value is widely referred to as the “Net Present Value” (NPV). . 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? So the Terminal Value here is three times as large!