To build a comprehensive financial model and valuation, several key components must be considered:
: Constructing tax depreciation schedules, Net Operating Loss (NOL) schedules, and detailed segment build-ups. Wall Street Training & Advisory WST Certification Requirements
| Method | Value Basis | Key Inputs | Best For | Weakness | | :--- | :--- | :--- | :--- | :--- | | | Intrinsic | WACC, UFCF | Stable cash flows, no peers | Highly sensitive to terminal value | | Comps | Relative (Minority) | LTM EBITDA, P/E | Liquid stocks, benchmarking | Ignores control premium | | Precedent Transactions | Relative (Control) | EV/EBITDA of deals | M&A target valuation | Stale data, deal-specific synergies |
Using market multiples from peer groups.