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The Role of Financial Projections in Business Valuation

Equilest

The most widely used approach is the Discounted Cash Flow (DCF) analysis, which calculates the present value of projected cash flows by applying a discount rate. Market-Based Valuation Market-based valuation methods determine the value of a business by comparing it to similar companies in the market.

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

Valutico

Key takeaways: Valuation is critical in M&A for determining fair prices, negotiation, securing financing, and regulatory compliance. A combination of valuation methods is used in M&A to provide a comprehensive view of a target company’s worth.