What is the Football Field Valuation?
The Football Field Valuation Chart is one of the most common slides in an investment banking pitch book.
In short, the football field is a floating bar chart in Excel that puts several valuation analyses side-by-side to provide clients with the full context of a company’s value using a variety of methodologies and assumptions.
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How to Build a Football Field Valuation Matrix
In investment banking, the standard football field valuation matrix will estimate the company value based on:
- DCF Valuation
- LBO Analysis
- Comparable Company Analysis
- Precedent Transactions Analysis
- Trading 52-week high and low
- Liquidation Analysis (optional)
- Sum of the Parts Analysis (optional)
What is the Purpose of the Football Field Valuation Matrix?
The purpose of the football field valuation is to create a visual summary of all the valuation analyses that were performed on a company and to demonstrate a valuation range based on those valuation methodologies.
The goal of the football field valuation chart summary is to sanity-check various methodologies against one another.
For example, a comparable company analysis might show high valuations during strong equity markets, while an intrinsic DCF valuation might show a lower valuation. The football field places those alternative valuation approaches side by side when arriving at a valuation range. In addition to being a staple of the investment banking pitch book, it is also used in fairness opinions.
Football Field Valuation Matrix: Excel Template
Before watching the excerpt from Wall Street Prep’s full Financial Modeling Training Package, use the form below to follow along with our free football field valuation template.
