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

Valutico

Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) to its market value.

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M&A Terms Every Business Owner Should Know

Class VI Partner

The higher the degree of risk or unpredictability of a set of future cash flows, the higher the discount rate. Discounted Cash Flow Value Discounted Cash Flow Value refers to the calculation of a company’s Enterprise Value on the basis of its ability to generate free cash flow over time.