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Company valuation

Value a business from first principles

Free cash flow, forecasting, WACC, terminal value, mid-year discounting, the bridge from enterprise value to value per share, and relative valuation with multiples and trading comparables — each step built and checked in a live model.

  1. 1How companies are valuedIntrinsic vs relative valuation, enterprise value vs equity value, and when to use which.Free
  2. 2From EBIT to unlevered free cash flowWhat cash a business really generates for all its investors — and how to calculate it.Free
  3. 3Forecasting free cash flowDrive a three-year cash-flow forecast from a handful of linked assumptions.Members
  4. 4Cost of capital: CAPM and WACCEstimate the discount rate that reflects the risk borne by all investors.Members
  5. 5Terminal valueCapture the value beyond the forecast period — usually most of a DCF.Members
  6. 6Exit-multiple terminal valueValue the terminal year with a market multiple and reconcile it with Gordon growth.Members
  7. 7Mid-year discountingDiscount cash flows from the middle of each year — and treat the terminal value consistently.Members
  8. 8The DCF: from enterprise value to value per shareAssemble the full valuation and bridge to what shareholders own.Members
  9. 9The equity bridgeWalk from enterprise value to equity value per share — every claim, with the right sign.Members
  10. 10Sensitivity analysisShow how value changes with WACC and growth — and master mixed references.Members
  11. 11Valuation multiplesEV/EBITDA, EV/Sales and P/E — and why the numerator must match the denominator.Members
  12. 12Trading comparablesBuild a comps table for Rawdah's peers and turn it into a value-per-share range.Members
  13. 13Precedent transactionsValue a company from the prices paid for whole companies in past deals — and explain why they sit above trading multiples.Members
  14. 14Cross-checking a DCF with multiplesTurn a DCF's answer into the multiples it implies, and judge whether the market would recognise them.Members
  15. 15Dividend discount modelsValue a share as the present value of its dividends, with the Gordon growth and two-stage models.Members