This Valuation Analysis Excel Model Template comprises Comparable Analysis (Comps), Precedent Transactions, DCF (Discounted Cash Flow) Analysis, and Football Field Chart summaries. The first two being forms of relative valuation, with the DCF approach being an intrinsic valuation. Together, these models help to form a more accurate valuation for a company.
Comparable Analysis (Comps)Comparable analysis (Comps) is a type of relative valuation in which analysts identify the industry peer group of the target company and use the average trading multiples to determine its target price.
Precedent Transactions (Precedents)Precedent transaction analysis (Precedents) is another form of relative valuation. However with precedent transactions, analysts look at recent M&A transactions in the same industry with similar characteristics.
Discounted Cash Flow (DCF) AnalysisA DCF analysis is a more detailed and complicated valuation method than comps and precedents, and it often produces the most accurate valuation. It is a type of intrinsic valuation in which the business’ unlevered free cash flows (FCFF) are forecasted into the future and then discounted back to the present time at the firm’s weighted average cost of capital (WACC).
Football Field ChartA football field chart is a clear and efficient way of displaying valuation ranges from various methodologies. This chart allows analysts to present the average target price based on the estimated valuation ranges.
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