Remove Equity Remove Net Present Value Remove Terminal Value Remove Weighted Average Cost of Capital
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Issues faced when valuing a declining company

Andrew Stolz

Quoted from Wall Street Oasis.com, it describes discounted cash flow (DCF) process by estimating the total value of all future cash flows (both inflow and outflow), and then discounting them (usually using Weighted Average Cost of Capital – WACC ) to find a present value of the cash flow.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

This value is widely referred to as the “Net Present Value” (NPV). . Well, the short answer is after that forecast period where we estimate each year’s cash flows then discount them, we add a single number at the end to account for all the theoretical years in the future, called the Terminal Value (TV).