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The Role of Financial Projections in Business Valuation

Equilest

It is important to document and justify these assumptions clearly. Market-Based Valuation Market-based valuation methods determine the value of a business by comparing it to similar companies in the market. Asset-Based Valuation Asset-based valuation methods assess the value of a business based on its net assets.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Discount Rate Discount Rate refers to the rate at which a stream of future cash flows is discounted to determine Net Present Value. 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.