Precedent Transaction Analysis Price to Earnings Weighted Average Cost of Capital 
RNC
OCTOBER 23, 2024
To apply DCF, you’ll need to forecast the company’s free cash flows for the future, discount them using the company’s weighted average cost of capital (WACC), and sum them up to determine the present value. This method looks at past M&A transactions involving similar companies to establish a fair value for shares.
Valutico
MAY 6, 2024
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. Simplicity: Relatively easy to understand and implement.
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