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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 terminal value can be estimated using the perpetuity growth model or the exit multiple approach.

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Oil & Gas Investment Banking: The First Victim of the ESG Cult?

Brian DeChesare

Essentially, the NAV Model is a super-long-term DCF without a Terminal Value. The Terminal Value doesn’t make sense in this vertical because oil and gas resources are finite; you can’t assume that a company will keep producing “forever.”.

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