Valuation

Here you'll find "must reads" and other articles related to Valuation.

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Valuation Must Reads

Adjusted EBITDA: The cure is worse than the disease

Companies are required to file financial statements in accordance with accrual accounting rules that are called Generally Accepted Accounting Principles (GAAP). GAAP gives you some leeway about which expenses you capitalize (like PP&E) and ... Read More

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WACC (Weighted Average Cost of Capital): WACC Formula and Real Examples

The weighted average cost of capital (WACC) is one of the key inputs in discounted cash flow (DCF) analysis and is frequently the topic of technical investment banking interviews. The WACC is the rate at which ... Read More

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EBITDA vs Cash Flow From Operations vs Free Cash Flow

EBITDA is often used as a proxy for cash flows, but many investment banking analysts and associates struggle to fully grasp the differences between EBITDA, cash from operations, free cash flows and other profitability metrics. ... Read More

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Enterprise Value vs Equity Value

Questions surrounding enterprise value vs equity value seem to pop up again and again in our corporate training seminars. In general, investment bankers seem to know a lot less about valuation concepts than you'd expect given ... Read More

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