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Valuation Tools

Estimate business value with cash flow, WACC, terminal value, and sensitivity analysis.

Valuation is less about arriving at a single number than about understanding which assumptions that number rests on. Two defensible models of the same business can land a long way apart, and the useful conversation is almost always about the inputs rather than the output.

The DCF Valuation Model builds value up from forecast cash flows, a discount rate and a terminal value, with sensitivity analysis showing how far the answer moves when growth or WACC does. That range is usually more informative than the midpoint, and far easier to defend.

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