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What Other Valuation Methodologies Are There?

Answer»

Other methodologies include:

  • Liquidation VALUATION : Valuing a COMPANY's ASSETS, assuming they are sold off and then subtracting liabilities to determine how much capital, if any, equity investors receive
  • Replacement Value : Valuing a company based on the COST of replacing its assets
  • LBO Analysis : Determining how much a PE firm could pay for a company to hit a "target" IRR, usually in the 20-25% range
  • Sum of the Parts : Valuing each division of a company separately and adding them together at the end
  • M&A Premiums Analysis : Analyzing M&A deals and figuring out the premium that each buyer paid, and using this to establish what your company is worth
  • Future SHARE Price Analysis : Projecting a company's share price based on the P / E multiples of the public company comparables, then discounting it back to its present value

Other methodologies include:



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