Valutico

MAY 19, 2025

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. The multiple is calculated as Enterprise Value (EV) divided by EBITDA. EV/EBITDA is a widely used multiple in this relative valuation approach.

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 52

Musings on Markets

JANUARY 10, 2025

In corporate finance and investing, which are areas that I work in, I find myself doing double takes as I listen to politicians, market experts and economists making statements about company and market behavior that are fairy tales, and data is often my weapon for discerning the truth. Standard Deviation in Equity/Firm Value 2.

Risk Premium 119

Risk Premium Dividends Start-ups Corporate Finance 119

Musings on Markets

JANUARY 5, 2024

Thus, looking at only the companies in the S&P 500 may give you more reliable data, with fewer missing observations, but your results will reflect what large market cap companies in any sector or industry do, rather than what is typical for that industry.

Dividends 106

Dividends Risk Premium Equity Book Value 106

Valutico

SEPTEMBER 22, 2023

There are three primary approaches under which most valuation methods sit, which include the income approach, market approach, and asset-based approach. The income approach estimates value based on future earnings, using techniques like the discounted cash flow analysis. How Do I Value a Business?

Discounted Cash Flow 52

Discounted Cash Flow Intangible Assets Book Value Asset-based Approach 52

Valutico

DECEMBER 15, 2022

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. are included in the transaction values.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

DECEMBER 15, 2022

Below, we outline what this method is, the different ways it works as well as key considerations when using this approach to value a company. Valuations using multiples is one of the three main approaches to valuing a business, sometimes referred to as the ‘market-based approach’. are included in the transaction values.

Precedent Transaction Analysis 52

Precedent Transaction Analysis Comparable Company Analysis EBITDA Enterprise Value 52

Andrew Stolz

JANUARY 12, 2022

They have 90% market share of in FCEV. This gives it a market share of 5%, compared to Tesla’s 14.6%. If it can maintain a 6-7% EBIT margin it changes the market’s assessment of the company. A price-to-book ratio of less than 1x indicates that the market values the net assets less than the balance sheet suggests.

EBIT 52

EBIT Price to Book Liquidation Value Book Value 52