Category: Valuation

How buyers and advisers estimate what a company is worth — intrinsic and relative methods.

6 articles in this category.

• Accretion/dilution analysis — A test of whether a deal raises or lowers the acquirer’s earnings per share.
• Business valuation — The set of methods used to estimate the economic value of a company or its equity.
• Comparable company analysis — Relative valuation using the market multiples of similar publicly traded companies.
• Discounted cash flow — An intrinsic valuation that discounts a company’s projected cash flows to present value.
• Enterprise value — The total value of a company’s operations, independent of its capital structure.
• Precedent transaction analysis — Relative valuation using the multiples paid in comparable past acquisitions.