Francineway.com Website Review

Navigation Blog On The Bookshelves About Newsletter Signup On this very last valuation blog post, I'd like to walk us through a presentation I made back in April 2017 as a part of my master in finance fellowship Capstone presentation. I recorded the actual presentation on the day off, but the sound quality of the recording is terrible, so I decided to re-do the presentation at home in the form of a screen-cast for this blog. The sound quality is much better this I hope you enjoyed the walk through. If you want to provide feedback or submit questions about this presentation, please email me at Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). We have also discussed how scenario and sensitivity an*lyses can be applied to the different methods. In this post, to wrap up the valuation discussions, I’d like to walk us through some of the other less known valuation methods. It is not that they less important, it is just that they are currently less well known than the others we have covered to-date. The 1st one for today is the TANGIBLE BOOK VALUE (TBV) method. It bases the enterprise value calculation on the balance sheet equity and deduct any intangible as*ets (goodwill, customer lists, etc.). TBV is a method often used to establish a low-level valuation for an on-going entity as most companies typically trade for multiples of book value (4Xs TBV or more). TBV is calculated as follow: The ADVANTAGE of this approach lies on its SIMPLICITY. The DISADVANTAGE is its NARROWNESS in meaningful usage: it is only retailer) or when the as*ets are primarily cash or liquid as*ets (such as banks and financial service firms). Other than these two types of businesses, TBV should only be used as a complementary method to other valuation methods. The 2nd valuation method for today is the LIQUIDATION VALUE method. It bases the enterprise value calculation on an orderly liquidation basis