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Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

However, as a former treasury professional with two Fortune 100 energy companies, I can articulate that cash does not lie. Treasury Regulations Section 1.611 – “the fair market value of an oil and gas property is the amount which would induce a willing seller to sell and a willing buyer to purchase.” The Asset-Based Approach.

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Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

However, as a former treasury professional with two Fortune 100 energy companies, I can articulate that cash does not lie. It is true that oil and gas production involves complexities that other businesses do not have, and the gathering, processing, transportation, and marketing processes and costs can be opaque.

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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. Cost of Debt.