Value Scope

JULY 21, 2020

Alpha is an adjustment made to the Capital Asset Pricing Model (“CAPM”) as part of the calculation of the Weighted Average Cost of Capital, or “WACC.” Using Alpha, however, it could be done. Alpha is unsystematic risk, unique to the firm undergoing valuation. Sources: [1] [link]. [2]

Intangible Assets 130

Intangible Assets Beta Alpha Unlevered Beta 130

Valutico

MAY 6, 2024

Key takeaways: Valuation is critical in M&A for determining fair prices, negotiation, securing financing, and regulatory compliance. This rate typically reflects the weighted average cost of capital (WACC) which accounts for the risk associated with the future cash flows and the capital structure of the company.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Valutico

AUGUST 23, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52