Valutico

SEPTEMBER 19, 2022

5 Simple Sense-Checks That Vastly Improve Your Business Valuation (According to the Experts). It’s easy to get tripped up by detailed assumptions when valuing a business, especially if you’re in a hurry to produce results. One critical component of the terminal value is the perpetual growth rate.

Business Valuation 78

Business Valuation EBITDA EBIT Discounted Cash Flow 78

Chris Mercer

NOVEMBER 15, 2022

I have heard many appraisers suggest that one should not normalize owner compensation when valuing minority interests “because the minority shareholder cannot change compensation.” Travis Harms and I cover the topic of normalizing adjustments in our book, Business Valuation: An Integrated Theory Third Edition , on pages 117-123.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Appraisal 52

Equidam

NOVEMBER 22, 2021

The EBITDA multiples in 2021 not only reached, but much exceeded pre-pandemic levels. It is too early to determine the reasons why the EBITDA multiple for footwear companies surpasses 33X, while the multiple for MedTech firms exceeds 35X. High EBITDA multiples, on the other hand, may be viewed as a way to discount inflation.

EBITDA 52

EBITDA Banking Marketability Terminal Value 52

Equilest

NOVEMBER 25, 2023

On the other hand, Equity Value solely concentrates on the shareholders' stake in the company. Significance in Valuation: Understanding this difference is crucial in various valuation methodologies. Financial Criteria: Dive deeper into revenue, EBITDA, and other financial metrics for more specific comparisons.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52