Andrew Stolz

AUGUST 6, 2020

Absolute valuation is calculated through the discounted dividend model (DDM) method and discounted cash flow (DCF) method where you only focus on the stock and look at its dividends, cash flow, and growth. Often companies don’t pay dividends every quarter or every year hence making their payouts irregular. D0 = D1 ÷ (r – g).

Discounted Cash Flow 52

Discounted Cash Flow Dividends Price to Earnings Net Present Value 52

Class VI Partner

JULY 28, 2021

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. EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52

Equilest

MARCH 17, 2022

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). Enterprise Value = Operating Value (x times EBIT or EBITDA). For example, a requested rate of return of 20% per year is equivalent to a multiple of 5 (1/20% = 5). EV = Result x Multiple. x250% per year. Multiple (M).

Business Valuation 40

Business Valuation EBIT EBITDA Discounted Cash Flow 40