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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

These cash flows represent the net amount of cash that is expected to be received over the investment period. The future cash flows are then discounted back to their present value using a discount rate. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.

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

Valutico

Context of DCF: There are three main approaches to calculating a company’s value. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. the asset-based approach also known as the cost-based approach, and finally 3. The first is 1.