Valuation Methods
The valuation methods are truly essential and they represent a large number of questions in the interviews.
This course is about knowing and understanding the main valuation methods but also being able to compare them and to explain which one will be more accurate in any particular situation. The chapter also helps you prepare for the most technical and complicated questions around valuation.
We will study many numerical cases around valuations such as numerical DCFs of Paper LBOs.
- Explain the precedent transactions method
- Explain the trading comps valuation method
- Walk me through a DCF
- Walk me through an LBO
- Which valuation method leads to the highest valuation?
- Numerical "paper LBO"
- What is a WACC and how to calculate it?
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Course 1M&A TrainingOverview of the valuation methods
The purpose of this course is to explain, detail and compare all valuation methods. You will be asked to assess which methods are the most accurate in certain situations and this is what this video is all about.
19 min -
Course 2M&A TrainingTrading Comparables Method
This method is about comparing the company we want to value to comparable listed peers. We will detail how to identify a comparable company and how to calculate its valuation multiples.
28 min -
Course 3M&A TrainingPrecedent Transactions Method
This method is about comparing the company we want to value to comparable precedent transactions. We will detail how to identify a comparable transaction and how to get to its valuation metrics.
18 min -
Course 4M&A Training"Walk me through a DCF"
This video explains and describes the DCF method. We will go through all the steps to build a DCF valuation and focus on all you need to know about each step.
31 min -
Course 5M&A TrainingFocus on WACC
WACC is a key part of DCF, so we detail how to calculate it. It is the subject of many questions in interviews and this is the reason why we are focusing on it for an entire video.
24 min -
Course 6M&A TrainingThe LBO Method
Private Equity funds are essential in M&A process. The LBO method is one of the most frequently used valuation method. Here, we go through all the different steps of the LBO method.
25 min -
Course 7M&A TrainingPaper LBO
The "Paper LBO" is a numerical case study whose objective is to go through an LBO step by step to get to Multiple of Money and IRR. You will be given numerical assumptions to start and then have to detail the method and the calculations.
14 min