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Become a Financial Planning Analyst
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Module 8
Relative Valuation and Market Comparables
1
Selecting Comparable Public Companies
Define criteria for selecting a relevant peer group of comparable public companies.
2
Extracting and Standardizing Financial Data for Comparable Company Analysis
Source and standardize financial data from public filings (10-K, 10-Q) for a comparable company analysis.
3
Market Capitalization & Enterprise Value Calculation
Calculate Market Capitalization and Enterprise Value for each company in the peer group.
4
Understanding and Calculating Trading Multiples
Calculate and interpret common trading multiples, such as EV/Revenue, EV/EBITDA, and P/E.
5
Selecting Comparable M&A Transactions
Define criteria for selecting comparable M&A transactions and source data from financial databases.
6
Transaction Multiple Analysis
Calculate and standardize transaction multiples from precedent transactions, adjusting for control premiums.
7
Implied Valuation from Multiples
Use the range of multiples from trading comps and precedent transactions to derive an implied valuation for the target company.
Previous module
Discounted Cash Flow (DCF) Valuation
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Cash Flow and Working Capital Management