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

Valutico

These methods provide a relative measure of a company’s value and are widely used due to their market-based nature. The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Well, the short answer is after that forecast period where we estimate each year’s cash flows then discount them, we add a single number at the end to account for all the theoretical years in the future, called the Terminal Value (TV). The first is 1.