Remove Equity Remove Firm Value Remove Marketability Remove Weighted Average Cost of Capital
article thumbnail

Modigliani-Miller Theorem - is it Any Good For Business Valuation?

Equilest

Modigliani-Miller Theorem in the no-tax world states that the value of a firm is independent of its capital structure, meaning that the mix of debt and equity used by the firm has no effect on its overall value. . . . Suppose each firm produces an annual cash flow of 10 million USD. Why is that?

article thumbnail

ESG Valuation Considerations – Top Down or Bottom Up?

Value Scope

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? Do ESG programs impact firm value?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Announcement: Valutico Provides Easier Way to Value Startups

Valutico

As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. For demonstrations please contact Head of Marketing, Alex Harris. Have Questions About the VC Method? What is the VC method?

article thumbnail

ESG A Valuation Framework

Value Scope

How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? . Do ESG programs impact firm value? Technology.