1: Discounted cash flow valuation method

The discounted cash flow (DCF) valuation method is a commonly used technique for valuing unlisted companies. This method involves estimating the company’s future cash flows and discounting them at an acceptable rate of return. The discount rate is typically calculated based on the company’s weighted average cost of capital. The value obtained using this method represents the company’s intrinsic value, i.e., the value the company is expected to have on the market.

2: The multiple transaction method

The transaction multiple method is a valuation method that compares a company’s valuation multiples with those of similar transactions that have already taken place in the market. This method is based on the assumption that comparable companies should have similar valuation multiples. Commonly used valuation multiples are the enterprise value-to-EBITDA ratio, the price-to-earnings ratio, and the enterprise value-to-sales ratio.

3: The adjusted net book value method

The adjusted net book value (NAV) method is a method that values a company by subtracting the value of its liabilities from the value of its assets. The value of its assets is adjusted to reflect their fair market value rather than their book value. This method is particularly useful for companies that own significant assets, such as real estate or expensive equipment.

4: The comparative market evaluation method

Comparative market valuation is a valuation method that compares a company to similar publicly traded companies. This method is based on the assumption that comparable companies should have similar valuation multiples. Commonly used valuation multiples are the enterprise value-to-EBITDA ratio, the price-to-earnings ratio, and the enterprise value-to-sales ratio.

5: The method of the value of economic assets

The Economic Value of Equity (EVA) method is a method that measures a company’s economic performance by taking into account its cost of capital and its cost of invested capital. This method evaluates the company based on its ability to create economic value for its shareholders. It is based on the assumption that the company should generate a return sufficient to cover the cost of its invested capital.