valuation-methods

Valuation Methods

• Match the method to the business model; do not force a DCF or multiple where its denominator is economically meaningless.
• Keep enterprise value and equity value separate, and reconcile net debt, leases, pensions, minorities, investments, and diluted shares consistently.
• Label trailing, forward, fiscal, calendarized, reported, and normalized figures.
• Anchor assumptions in operating drivers, then use bear, base, and bull cases.
• In a DCF, disclose revenue growth, margin, tax, reinvestment, discount rate, perpetual growth, net debt, and diluted shares.
• Always show sensitivity and the share of enterprise value coming from the terminal value.
• For relative valuation, justify the peer set and explain structural differences before applying a multiple.
• Avoid false precision; a range with explicit conditions is more useful than a single target.