Common Valuation Methods

Common Valuation Methods

  1. Discounted Cash Flow (DCF)
  2. Comparables (with market prices)
  3. Comparables (with transaction prices, e.g. M&A, LBO, etc.)
  4. Replacement cost of assets (remark: Tobin’s Q ratio uses this)
  5. Tangible Book Value
  6. Break-up Value
  7. Liquidation Value
  8. Real Option Value (future growth potential of the company depending on management decisions)


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