What valuation techniques do you guys use in PE?
I was wondering what types of valuation techniques do you guys use when valuing a company? I know the strategies will vary based on industry and firm, so I just wanted to see what everyone has to say.
Comps and DCF, this was for MM Healthcare. Didn't notice this was for PE, my experience was in IB.
Increasingly comps
What type of valuation? for Private Companies (i.e. non-public) For going into a transaction its based on IRR, the base price is derived though a comps valuation with some discounts, then we adjust price, working capital, and other terms to get the valuation to a level where we feel comfortable going in given the firms risk. Always incorporate margin of safety!
For year end valuation with the auditors, its a simple (not driver based) financial model with DCF, comps, and transactions
Goal seek.
NAV, discount to NAV, yield (all for Real Estate)
hmmm good question, let me get back to you on this one.
LBO and comps, very little DCF
WWJD
Mid market PE focused on operational improvement: LBO, DCF, in-house FCF analysis, comps.
DCF, FCF, comps
LBO....
Valuation outputs for PE? (Originally Posted: 10/27/2015)
Just wondering are there any key valuation outputs other than IRR, money multiple and dividend yield that are commonly used for PE?
no one knows any metrics to compare investments other than IRR and MoM?
Literally no one?
Placeat excepturi non amet eos illo. Nam fugiat voluptates aut vitae. Laboriosam quasi autem aliquid et magnam.
Eaque amet nihil in explicabo veritatis est. Maxime et sed voluptatem optio. Ullam dolorem sint cupiditate hic voluptatem. Et voluptatem molestias molestiae.
Reprehenderit hic non provident. Ut ea esse explicabo qui enim voluptatum. Minus repellendus ut magni consequatur cupiditate eius.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...