Module 7
Valuation Methods
How PE firms determine what a business is worth using trading comps, precedent transactions, DCF, and LBO analysis.
Lessons
Lesson 1
Enterprise Value & Equity Value
The EV bridge, debt-like items, and why PE uses enterprise value multiples
~20 min
Lesson 2
Trading Comparables
Building a peer group, selecting multiples, and interpreting the output range
~20 min
Lesson 3
Precedent Transactions
Analyzing comparable M&A deals, control premiums, and limitations of transaction data
~15 min
Lesson 4
DCF Analysis
Discounting unlevered free cash flows to determine intrinsic value
~25 min
Lesson 5
LBO as Floor Valuation
Using LBO analysis to determine the minimum price a financial buyer can pay
~20 min
Lesson 6
Sector-Specific Metrics & Football Field
Industry-specific valuation multiples and synthesizing multiple methods into a single view
~15 min