Types of Valuation
A comparable transaction is a method of valuing a company that is for sale using data from recent transactions involving targeted companies. A comparable transaction is a method of valuing a company that is for sale using data from recent transactions involving targeted companies.
Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analyses use future free cash flow projections and discounts them, using a required annual rate, to arrive at present value estimates.
Investment Valuation Ratios: Enterprise Value Multiple This valuation metric is calculated by dividing a company's "enterprise value" by its earnings before interest expense, taxes, depreciation and amortization (EBITDA).
The main purpose of equity valuation is to estimate a value for a firm or security. The comparable model is a relative valuation approach. The main purpose of equity valuation is to estimate a value for a firm or security.
Market value also refers to the market capitalization of a publicly-traded company. Market value is the price an asset would get in the marketplace. Market value also refers to the market capitalization of a publicly-traded company.
The multiples approach is a valuation theory based on the idea that similar assets sell at similar prices. The multiples approach is a valuation theory based on the idea that similar assets sell at similar prices.