Equilest

NOVEMBER 25, 2023

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?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Equilest

DECEMBER 4, 2024

To discover how blue sky valuation combined with the Discounted Cash Flow (DCF) method helps assess intangible assets like brand equity, intellectual property, and goodwill. It estimates a company’s intrinsic value based on future cash flows, discounted back to their present value. Calculating terminal value.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Terminal Value Business Valuation 40

Chris Mercer

NOVEMBER 15, 2022

Otherwise, the appraiser is not valuing the appropriate asset. Assume further that the appropriate EBITDA multiple is 6x and that the underlying equity discount rate is 14%. This is the only way that hypothetical buyers can understand the value of the entire asset, a small interest of which they are buying. million (6 x $2.0

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Terminal Value 52

Valutico

MAY 6, 2024

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.

Discounted Cash Flow 52

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

Andrew Stolz

MAY 22, 2020

Since, in most valuations, we assume an ongoing business basis where most of the value comes from the terminal value, a smooth transition of cashflows from the discrete to the fade, and then to the terminal period is needed. as well as valuing the investment profitability. References.

Terminal Value 52

Terminal Value Dividends Marketability Equity 52

Chris Mercer

MARCH 7, 2024

The emerging attractiveness of the entity for equity offering, sale, merger or acquisition. The determination of the present value of expected future cash flows is inherently a quantitative exercise. The final cash flow for minority interests is the expectation of a terminal value at the end of the expected holding period.

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52

Equilest

AUGUST 6, 2023

Key Financial Ratios: Ratios such as Price-Earnings Ratio (P/E), Price-to-Book Ratio (P/B), and Debt-to-Equity Ratio provide valuable insights into the company's performance and market position. Understanding the company's financial health is fundamental to valuation.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Brian DeChesare

SEPTEMBER 20, 2023

Q: Why not private equity, growth equity, hedge funds, or entrepreneurship? Growth equity is a bit closer, but you’re more interested in early-stage companies that need VC support rather than already successful companies that need more capital. Q: What’s the difference between pre-money and post-money valuations?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Musings on Markets

FEBRUARY 2, 2023

Finally, my starting cost of capital of 10.15% reflects the reality that the riskfree rate and equity risk premiums have risen over 2022, and my ending number of 9% is an indication that I expect Tesla to become less risky over time.

Start-ups 99

Start-ups Risk-free Rate Market Capitalization Risk Premium 99

Chris Mercer

AUGUST 1, 2022

The median market value of equity (MVE) for dividend-paying stocks was $133 million, and the average MVE was $248 million. There is no information in any restricted stock study to help business appraisers estimate the value of expected future dividends. And what about the terminal value that gives rise to capital appreciation?

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Chris Mercer

MARCH 8, 2023

This is a summary statement of the discounted cash flow model in which normalized expected cash flows of the business are projected into the future for a finite period of time and then, a terminal value is calculated to represent the then value of all remaining cash flows beyond the finite forecast period.

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Chris Mercer

MARCH 29, 2024

The value of an interest in a business is a function of the expected cash flows to the interest (which are derivative of the expected cash flows of the business itself, the growth of those cash flows, including a terminal value at the end of an expected holding period, and the risks associated with achieving those cash flows.

Marketability 52

Marketability Appraisal Business Valuation Dividends 52

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. Midstream: 85 (mix of asset deals, M&A, debt, and even some private equity activity).

Banking 98

Banking EBITDA Dividends Equity 98

Brian DeChesare

APRIL 19, 2023

Metals & Mining Investment Banking Definition: In metals & mining investment banking, professionals advise companies that find, produce, and distribute base metals, bulk commodities, and precious metals on debt and equity issuances and mergers and acquisitions. OK, now to the good news: This situation is starting to change.

Banking 52

Banking Start-ups Private Equity Firm Equity 52