Brian DeChesare

MAY 3, 2023

The DDM is more grounded because it’s based on the company’s actual distributions and potential future value. And it values the company today based on the present value of its dividends and that potential future value (either the stock price or the Equity Value via the Terminal Value calculation).

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Valutico

SEPTEMBER 19, 2022

A useful tip is to check for consistency between the forecast margins and historical margins—EBITDA margin, EBIT margin, and Net Income margin. One critical component of the terminal value is the perpetual growth rate. Hockey stick-like growth in your DCF projections may indicate these projections are not realistic.

Business Valuation 78

Business Valuation EBIT EBITDA Discounted Cash Flow 78

Andrew Stolz

MAY 8, 2020

Discount Future Cash Flows – either by using the Mid-Year discount or a simple discount period, it is fairly simple to calculate the present value of future cash flows. Another DCF concern happens when the analyst wants to determine the terminal value of a declining company.

Discounted Cash Flow 52

Discounted Cash Flow Weighted Average Cost of Capital Terminal Value Net Present Value 52

Equilest

NOVEMBER 25, 2023

On the other hand, Equity Value solely concentrates on the shareholders' stake in the company. EV is often used in multiples like EV/EBITDA, providing a holistic view, while Equity Value is fundamental in metrics like Price/Earnings (PE) ratio. Which is Better: PE or EV to EBITDA? Can Terminal Value be Negative?

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

MAY 6, 2024

These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) to its market value. These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Brian DeChesare

APRIL 19, 2023

To value it, we build a standard DCF based on production volumes, CapEx to drive capacity, and assumed steel prices: The valuation multiples are also standard (TEV / Revenue, TEV / EBITDA, and P / E). Again, there is no Terminal Value since you forecast production until the mines stop producing at viable levels.

Banking 52

Banking Start-ups Private Equity Firm Equity 52

Brian DeChesare

AUGUST 10, 2022

If Midstream companies want to grow beyond the fee increases written into their contracts and possible volume growth, they need to spend on Growth CapEx and estimate the incremental EBITDA from that spending: Further adding to the complexity is the GP (General Partner) / LP (Limited Partner) structure used at most MLPs.

Banking 98

Banking Dividends EBITDA Equity 98

Chris Mercer

NOVEMBER 15, 2022

Assume a company has reported an EBITDA of $2.0 Assume further that the appropriate EBITDA multiple is 6x and that the underlying equity discount rate is 14%. Then, based on reported EBITDA, the company is worth $12.0 Normalized EBITDA is, therefore, $3.0 million based on normalized EBITDA. million (6 x $2.0

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Terminal Value 52

Equidam

JANUARY 21, 2025

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on January 29th, 2025. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. EBITDA MULTIPLES appeared first on Equidam.

EBITDA 52

EBITDA Terminal Value Banking Marketability 52

Equidam

APRIL 22, 2025

4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] in 3-7 years).

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

APRIL 22, 2025

1] Unlike valuing established public companies with long track records and stable earnings, startup valuation operates in a realm of high uncertainty. [2] Beyond the Number: Defining Startup Valuation At its core, startup valuation is the process of determining the economic worth of an early-stage company. [1]

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52