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The Role of Financial Projections in Business Valuation

Equilest

Balance Sheet Forecasts Balance sheet forecasts outline the expected assets, liabilities, and equity of a company at a future date. They provide insights into the financial position, capital structure, and overall worth of the business. The resulting net present value represents the estimated value of the business.

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

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios and apply them to the target company’s financials. The future cash flows are then discounted back to their present value using a discount rate.