Remove 2019 Remove EBITDA Remove Terminal Value
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The Relevance of Historical and Forecast Periods in a Business Valuation

Equilest

2018–2022) Year Revenue ($M) EBITDA Margin CapEx ($M) Working Capital ($M) 2018 8.0 Insight : EBITDA margins improved from 12% to 16%, while revenue increased steadily (except for a dip in 2020 due to COVID). 2023–2027) Year Revenue ($M) EBITDA Margin EBITDA ($M) CapEx ($M) FCFF ($M) 2023 11.0

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5 Simple Sense-Checks That Vastly Improve Your Business Valuation

Valutico

A useful tip is to check for consistency between the forecast margins and historical margins—EBITDA margin, EBIT margin, and Net Income margin. One critical component of the terminal value is the perpetual growth rate. Hockey stick-like growth in your DCF projections may indicate these projections are not realistic.