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

Valutico

The most common market-based valuation methods are the Comparable Companies Analysis (Comps) and the Precedent Transactions Analysis. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

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

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. This value is widely referred to as the “Net Present Value” (NPV). . which produces a Net Present Value of the Terminal Value of: $74 million. . So the Terminal Value here is three times as large! Let’s go. .