Company Valuation

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Company

Valuation
Your Company Name
Valuation Methodology

Methodology

Asset Based Income Based Market Based Other


Method Method Method Method

Capitalization of Comparable Company Contingent


Book Value Method
Earning Method Market Multiples Method Claim Valuation

Liquidation Value Discounted Free Cash Comparable Transaction Price of Recent


Method Flow Method Multiples Method Investment Method

Replacement Value Market Value Method


Rule of Thumb
Method (For Quoted Securities)

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Valuation Steps

Obtain an in – depth understanding


of the business and business Perform a thorough financial and Consider all three (3) valuation
ownership interest qualitative analysis approaches Income Approach Market Approach

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Present findings in a Reconcile indicated value(S) to Consider valuation adjustments Asset – Based Approach
report arrive at a conclusion of value (e.g. discounts or premiums)

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Company Valuation Methodologies
Methodologies

Asset Based Method Income Based Method Market Based Method Other Method

Book Value Capitalization of Earning Comparable Company Contingent Claim


Method Method Market Multiple Method Valuation

Comparable
Liquidation Value Discounted Free Cash Place of Recent
Transaction Multiple
Method Flow Method Investment Method
Method

Replacement Value
Market Value Method Rule of Thumb
Method

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Discounted Free Cash Flow (DCF) Technique - Data Set

1.5% 4% 9.9%

Beta Infinite Growth Rate Weighted Average


Cost of Capital

12% 7.2%

Cost of Equity Cost of Debt

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Determining Free Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 15000 16000 17000 18000 19000

EBITDA 8954 9898 10941 12093 12367

Less: D&A 1112 1222 1343 1476 1623

EBIT 7842 8676 9598 10617 11745

Less: Taxes (35%) 2745 3037 3359 3716 4111

Tax adjusted EBIT 5097 5639 6239 6901 7634

Plus: D&A 1112 1222 1343 1476 1623

Less: Capital Expenditure 1750 1750 1750 1750 1750

Less: Change in Net Working Capital 318 350 384 423 465

Free Cash Flow 4141 4762 5447 6205 7042

Note: 1NPV = Net Present Value


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Valuation Results
All Figures in $ MM

Valuation Results Valuation (USD)

NPV1 of Explicit Value 27,645

NPV of Terminal Period 125,934

Enterprise Value 153,579

Add: Cash 7,969

Gross Enterprise Value 161,548

Less: Debt 6,470

Equity Value 155,077

Outstanding Shares 2,446,645,889

Value Per Share ($) 63.38

Note: 1NPV = Net Present Value


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Relative Valuation
x Summary P/E2 EV/EBITDA3

Company Price Shares Market Cap EV1 FY 18 FY 19E FY 20E FY 18 FY 19E FY 20E

Company A 17.8 600.0 10,680.0 11,805.0 13.6 11.7 15.8 12.4 10.6 14.4

Company B 16.3 542.0 8,834.6 9,000.0 12.5 12.4 13.5 11.4 11.3 12.3

Company C 14.2 523.0 7,426.6 8,000.0 16.3 15.7 17.4 14.8 14.3 15.8

Company D 15.3 698.0 10,679.4 12,000.0 10.2 16.8 14.7 9.3 15.3 13.4

Company E 16.9 789.0 13,334.1 15,000.0 12.6 15.2 10.2 11.5 13.8 9.3

Company F 15.7 332.0 5,212.4 6,000.0 13.9 12.8 19.5 12.6 11.6 17.7

Median 13.6x 12.4x 10.9x 13.5x 12.7x 10.7x

Mean 13.4x 11.7x 10.5x 13.5x 11.8x 10.6x

Min 7.7x 7.5x 10.6x 7.8x 7.2x 10.7x

Max 16.5x 15.1x 12.5x 16.8x 15.7x 12.9x

Note: 1EV=Enterprise Value; 2P/E= Price to Earning Ratio; EBITDA = Earnings before Interest, taxes, depreciation & amortization

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Business Due-Diligence Process
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

Terms of Operational Financial Due Legal Due Reporting of


Engagement Due Diligence Diligence Diligence Information

In this stage, the terms of the The operational data and The financial statement, The legal and regulatory The result of the business
business due diligence are information about the data and information of the data and information of the due – diligence process is
decided between the parties business are measured, business are gathered, business are gathered, shared to the Buyer and/
and a non – disclosure gathered and documented. validated and documented. validated and documented. or Seller.
agreement is signed.

Eg: Your Text Here Eg: Cost Structures, Eg: Revenue, Expenses, Eg: Tax payments, Litigations, Eg: Further queries if any
Customer Base, etc. Profitability, Cash flow, Assets Registrations, Intellectual about the business may be
and Libalities Property raised by the Buyer

Mention key points/strategies, Mention key points/strategies, Mention key points/strategies, Mention key points/strategies, Mention key points/strategies,
if any, in each step if any, in each step if any, in each step if any, in each step if any, in each step

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Strategic Due-Diligence Methodology
Understand the business strategy in detail
Assess the employee & Organizational fit
Conduct external interviews Understand within the strategy Check whether the
customer behavior Validation of market Internal Company Analysis marketing, finance and other financial
size & trend Understanding the Industry Internal Company analysis strategies are in line with the vision &
business model to support current strategy mission of the company

Assess market segment & Assess Skills & Stress test corporate
growth trends Capabilities strategy

Baseline Review Business Profile Key competitor strategies Summary &


Starting situation Plan & technology trends Recommendations
Collection of data & review Analysis of income statement Focused group discussions and interviews of Perception on technological
Market research Business Industry Benchmarking Synergy customers, top employee from competitive & competitive landscape
studies Latest Technology Analysis firms Identify the major trends in technology & Consensus on business plan
competitor responses Identification of Risk & Risk
mitigation strategies
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Company Valuation Icon Slide

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Coffee
We back in 10 min Break Time
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Graphs And Charts

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Combo Chart
› Product 01 › Product 02 › Product 03

100 10
Market Size (RMB 100 Million)

90 9

80 8

70 7

Growth Rate (%)


60 6

50 5

40 4

30 3

20 2

10 1

0 0
FY' 11 FY' 12 FY' 13 FY' 14 FY' 15 FY' 16 FY' 17 FY' 18

This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.

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Scatter line
60

50
50
› Product 01
Dollar In Millions

40 35

30 25
20
20 15 15

10 7
5 4

0
0 5 10 15 20 25 30 35 40 45 50

Sales in Percentage

This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.

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Area Chart
100% › Product 01 › Product 02

100

90
Sales In Percentage(%)

80

70

60

50

40

30

20

10

0
FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18

This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.

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Additional Slides

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Our Mission
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Meet Our Team

Lily Albert
Tom Torres John Parker Julie Hill CEO
Developer Sales Manager Web Designer

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About Us
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Our Goals
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Comparison

54% Male
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Female
72%
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Financial

Minimum Medium Maximum

$35 $55 $85


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Positive thinking will let you
do everything better than negative
thinking will.

- Zig Ziglar

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Venn
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Thank Address:
# street number, city, state

You Contact Numbers:


0123456789

Email Address:
emailaddress123@gmail.com

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