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Valuing a Holding Company: A Comprehensive Guide

Equilest

Historical financial data and projected earnings are used to estimate the future cash flows. These cash flows are then discounted back to the present value to determine the company's overall worth. Key financial metrics, such as price-to-earnings ratio and enterprise value-to-EBITDA, are used to assess the relative valuation.

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Private Company Valuations—A Complete Guide

Valutico

In the DCF method, the value of the business is calculated by estimating the future cash flows of the business, with a discount rate applied. In the CCA method, valuation multiples such as P/E ratio, EV/Revenue ratio, and EV/EBITDA ratio, provide benchmarks for estimating value by comparing financial metrics to publicly traded companies.

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Private Company Valuations—A Complete Guide

Valutico

In the DCF method, the value of the business is calculated by estimating the future cash flows of the business, with a discount rate applied. In the CCA method, valuation multiples such as P/E ratio, EV/Revenue ratio, and EV/EBITDA ratio, provide benchmarks for estimating value by comparing financial metrics to publicly traded companies.