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.
Trending Content - Private Equity Forum
| +50 | Future of PE | 14 | 9m |
| +25 | Hardest time I have ever seen to be a GP | 3 | 3d |
| +20 | How to Get on Career Track / Stay Post ASO years | 6 | 1d |
| +19 | Healthcare PE | 7 | 15h |
| +19 | Weighing exit from LMM PC/PE | 4 | 1d |
| +15 | KKR comp for Principal | 20 | 15h |
| +11 | Reality of the move from LMM to MM | 2 | 6d |
| +9 | MBA and Private Equity | 3 | 2d |
| +9 | LMM/MM PE London | 5 | 2d |
| +8 | Lindsay Goldberg FT 27 | 8 | 12h |
Career Resources
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?
Est laborum autem nobis. Veritatis porro dignissimos animi magnam nesciunt. Omnis numquam aut numquam est dolore.
Veniam laudantium magnam itaque ullam inventore. Dolores nisi quasi ea aut est repudiandae.
A hic impedit itaque magnam aliquam. Dolor enim est quia blanditiis. Temporibus sint ad sit aut. Aut et et maxime sit. Quia vitae laudantium aut provident sapiente ratione impedit nemo.
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...