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What Is Stock Valuation?

Andrew Stolz

The DDM method allows you to value a company by looking at the sum of all the future dividend payments that have been discounted back to the net present value. . Relative valuation compares a stock value to its competitors and peers within the same industry. The most popular ratio is the price to earnings ratio.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Discount Rate Discount Rate refers to the rate at which a stream of future cash flows is discounted to determine Net Present Value. Often these are companies that are being financed by a private equity or investment firm to do a “roll-up,” or series of acquisitions in a particular industry.