Other Valuation Methods
Leveraged Buyouts (LBO)
The evaluation of a Leveraged Buyout (LBO) transaction is a rather complex process. Such transactions involve several key aspects: The stages of the evaluation methodology in practice are […]
Archive
Category: Corporate Valuation Theory, Evidence and Practice – by M. E. Zmijewski; R. W. Holthause
Market Multiples
Valuation By Multiple
A common mistake is valuing a company by comparing its multiples with those of other companies in the industry in a superficial way. The issue is that selecting […]
Market Multiples
Key Adjustments in Applying Market Multiples
*Corporate Valuation Theory, Evidence and PracticeMark E. Zmijewski; Robert W. HolthausenSecond Edition
WACC, CoC, Structure
Convertible Bonds
How should WACC be calculated when the capital structure includes convertible bonds? The value of a convertible bond is split into two components: The value of the conversion […]
DCF Valuation
NOL & Interest Carryforwards
📌 An organization’s accumulated loss is an asset from a tax savings perspective, and should therefore be considered in valuation. 📊 Such an asset is divided into two […]
Other Valuation Methods
Residual Income Valuation
Excess Earnings (Residual Income) Valuation is an interesting approach to firm valuation, often commercialized by consulting companies because it can also serve as the foundation for management incentive […]
Risk
The Impact of Derivatives on β
Below is a chart showing how dramatically a company’s equity beta can change with the expiration of derivative securities: Source: Corporate Valuation: Theory, Evidence and PracticeMark E. Zmijewski; […]