Valuation
Intrinsic valuation
We offer customized on-site training in the following areas: [For further details, please read more details here.]
Levered valuation: Discounted dividends model (DDM)
- When is DDM appropriate and not appropriate
- Drivers of dividends: ROE and growth in equity
- Discount rates for dividends: Cost of equity. See detailed discussion of business risk and financial risk here.
Unlevered valuation: Discounted enterprise free cash flows model
- When is DCF appropriate and not appropriate
- Drivers of enterprise free cash flows: ROIC and growth in invested capital
- Drivers of ROIC: See detailed discuss and growth
- Discount rates for dividends: Cost of equity
Relative valuation
We offer customized on-site training in the following areas: [For further details, please read more details here.]
Picking the right peers
- Industry characteristics
- Geographic location
- Size
- Margins and growth rates
Levered multiples
- Price-to-earnings ratio, Earnings yield, PEG ratio
- Price-to-book ratio, Price-to-tangible-net-worth ratio
- Dividend yield
Unlevered multiples
- Enterprise value (EV) to Unlevered net income ratio, EV/EBITDA ratio, EV/EBIT ratio
- Enterprise value to invested capital ratio, EV to tangible invested capital ratio
- Unlevered free cash flow yield