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. Defining "Blue Sky" in Valuation The term “blue sky” refers to the intangible value of a business. Calculating terminal value.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Terminal Value Business Valuation 40

RNC

DECEMBER 20, 2023

Use DCF analysis to estimate the present value of future cash flows, considering growth rates, discount rates, and terminal values. Valuing intangible assets, like intellectual property, is inherently subjective and variable. Finding comparable companies with similar models and prospects is a challenge.

Technology 52

Technology Discounted Cash Flow Intangible Assets Comparable Company Analysis 52

BV Specialists

JANUARY 3, 2022

Under the “Discounted Future Earnings” approach, the appraiser will estimate value primarily from future income probability, or forecasts, over a fixed period of time, to a terminal value, and discount this back to the present. This is generally preferred for fully operational companies with a lot of tangible assets.

Appraisal 52

Appraisal Liquidation Value Net Present Value Intangible Assets 52

Valutico

SEPTEMBER 13, 2023

Key methods include the Income Approach, which estimates future cash flows, the Market Approach, comparing with similar businesses, and the Asset Approach, valuing tangible and intangible assets. Lastly, determining the continuity value (or terminal value) is a subjective process that often leads to disagreements.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Equilest

NOVEMBER 25, 2023

Dive into the nuances of industry-specific multiples, grasp the challenges of valuing intangible assets, and discover the evolving landscape of incorporating Environmental, Social, and Governance (ESG) factors into the valuation framework. Can Terminal Value be Negative? When Not to Use DCF in Valuation?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

MAY 6, 2024

Since cash flow projections cannot be made indefinitely, a terminal value is often calculated to account for the value of cash flows extending beyond the forecast period. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.

Discounted Cash Flow 52

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

Valutico

AUGUST 10, 2023

The challenge with this approach when valuing SMEs is finding comparable businesses due to their unique characteristics. Asset-based Approach : This method functions like an inventory check, summing up a company’s tangible and intangible assets and subtracting liabilities, resulting in the company’s net asset value.

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 52