article thumbnail

Company Valuation Methods—Complete List and Guide

Valutico

Market-based approaches gauge a company’s value by analyzing comparable market transactions and valuations. Asset-based approaches determine a company’s value by evaluating its underlying tangible and intangible assets. It represents the total market value of the company’s equity.

article thumbnail

Data Update 1 for 2023: Setting the table!

Musings on Markets

Data universe : In my sample, I include all publicly traded firms with market capitalizations that exceed zero, traded anywhere in the world. Cost of Capital 3. EV/EBIT and EV/EBITDA 4. Standard deviations in equity and firm value 4. Debt ratios (Debt to capital, Debt to EBITDA) 1. Cost of Equity 1.

article thumbnail

Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

Thus, we start with operating income or earnings before interest and taxes (EBIT) replacing net income. (I With enterprise value multiples, you can scale enterprise value to FCFF, instead of using EBITDA or revenues as your scalar.