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The Role of Financial Projections in Business Valuation

Equilest

Cash flow projections assist in determining the liquidity, solvency, and financial stability of a business. Balance Sheet Forecasts Balance sheet forecasts outline the expected assets, liabilities, and equity of a company at a future date.

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Unlocking the Hidden Value: Exploring the Relationship between Retained Earnings and Business Valuation

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As an essential component of shareholders' equity, retained earnings reflect the accumulated profits that a company has chosen to reinvest rather than distribute as dividends. These include discounted cash flow (DCF) analysis, price-to-earnings (P/E) ratios, and comparables analysis.

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How can I learn to valuate a company?

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Key Financial Ratios: Ratios such as Price-Earnings Ratio (P/E), Price-to-Book Ratio (P/B), and Debt-to-Equity Ratio provide valuable insights into the company's performance and market position. Business valuation software automates complex calculations and data analysis, saving time and reducing the likelihood of human errors.