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

Valutico

Asset-based methods like Adjusted Book Value, Liquidation Value, and Replacement Cost consider the worth of tangible assets. Excerpted from the book “Valuation for Mergers and Acquisitions” by Barbara S. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value.

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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.