Discover published sets by community

A valuation method that estimates the value of an investment based on its expected future cash flows, discounted back to their present value using the cost of capital.

A relative valuation method that compares the company in question with similar companies that have recently been sold or are publicly traded, using valuation ratios like P/E, EV/EBITDA, etc. The values are then applied to the subject company's financials to estimate its value.

A valuation method that looks at the prices paid for similar companies in past M&A transactions. The historical prices are used to derive valuation multiples that are applied to the subject company's financials.

A valuation technique that determines the maximum purchase price for a company by analyzing the returns an investor could earn if the company were bought using a significant amount of borrowed money. It is based on the premise that the acquired company's cash flows can service the debt used to finance the transaction.

A valuation method that calculates a firm's leveraged value by first determining its value if entirely equity-financed (unlevered) and then adding the value of the tax shield from debt.

This approach determines the value of a company by calculating its weighted average cost of capital (WACC) and then applying it in the DCF analysis to discount future cash flows.

A valuation method that determines the net cash that would be received if all assets were sold and liabilities were paid off today. It provides a floor valuation, as it assumes the company will not continue as a going concern.

A valuation approach that assesses what it would cost to replace the company’s assets with new ones. This method is particularly relevant for companies with significant tangible assets and in industries where current operations may not be a reflection of the value of the assets.

A simplified valuation method that applies a multiple to a company’s earnings to estimate its value. The multiple can be derived from comparable companies or historical norms. This technique is commonly used with the Price-to-Earnings (P/E) ratio.

A model that values a company based on the present value of its future dividends. It assumes that dividends will grow at a constant rate indefinitely.

The simplest valuation metric, calculated by multiplying the current stock price by the total number of outstanding shares. It represents the total equity value of a publicly traded company according to the stock market.

A financial performance method that calculates the true economic profit of a company by subtracting the cost of capital from the company's net operating profit after taxes (NOPAT).

The net value of a company’s assets as listed on the balance sheet. Book value is calculated by subtracting total liabilities from total assets. It may differ significantly from market value or intrinsic value.

A valuation method that takes into account the flexibility a company has to make future decisions that will impact its value, such as the options to expand, defer, or abandon a project. This approach uses various option pricing models, like the Black-Scholes model or binomial option pricing.

A valuation method that measures the excess income earned above the required return on equity. It adds the present value of all future residual incomes to the book value of the equity.

This method involves valuing a company by the total net asset value of its subparts. It is most suitable for companies with significant tangible assets or investments, such as real estate or holding companies.

A financial ratio used to compare a company's current market price to its book value. It provides an indication of the value the market places on the equity of a company compared to the value of the equity on the company's books.

A valuation metric that compares the value of a company, including debt and other liabilities, to the true earnings before interest, taxes, depreciation, and amortization. It is useful for comparing companies with different financial structures and tax situations.

A valuation metric that compares a company's stock price to its revenues; used to value companies with no earnings or with earnings not representative of their potential profitability.