11 November, 2024
Infographic: 4 Ways to Determine the Value of a Company During an M&A
Originally published on VALUWIT’s LinkedIn page.
During a merger and acquisition (M&A), both companies involved in the deal will value the target company differently. One will try to land on the highest possible value, while the other, especially during an acquisition, will attempt to buy it for the lowest price possible.
Fortunately, a company can be objectively valued by relying on one of the following metrics:
- Discounted cash flow
- Price-to-earnings ration
- Enterprise-value-to-sales ratio
- Replacement cost
