Multiples consist of using the multiples of a company similar to yours to apply to your numbers and get an approximation of what yours is worth. It is not the most accurate in my opinion.
An example would be the EBITDA multiple, you multiply EBITDA by that figure obtained by dividing the value of the company you are comparing yourself to by its EBITDA.
This method is useful because although the estimated value of your company is not precise, with this method you can see the evolution over time.
250. The increase in provisions is not considered an outflow of cash, so it goes to the income statement.
– 150. The following are considered cash outflows
Add the cash paid instantly by the customer recorded in the cash flow statement as cash received from operations. And add the cash received from sales receivables.
This way we get the total cash received at the end of the year. These are the two accounts in which cash receipts are recorded, either instantaneously or at any time during the year.
Terminal value = cashflow * (1 + growth rate) // WACC – growth rate. This is because the cash flow and terminal value of the company is not being discounted correctly.
The WACC should be constant during all valuation years. If the same growth rate is applied, the valuation is always the same.
There are many elements that are important to look at. But I think the most important thing in valuations is the ability to generate cash. I think it is very important to understand the cash flow statement
and its different types (operational, financial and investment). To understand how a business generates its cash and how it uses it to generate results.
The cost of equity is equivalent to the risk-free return added to the multiplication of beta, being a variable of similarity to the market return, by the difference between the market return minus the risk-free rate.
It is understood that the risk-free rate is the insured return, but by multiplying by the market return obtained by a similarity coefficient it is possible to estimate the cost of equity of a company and make a linear model.
I think share price ratios are better, because you use the market price information, so you can evaluate your price evolution relative to what you generate in profits.
It is considered to be the most accurate period for valuations, in less than 5 years you get very similar valuations, but when you allow sales to increase for 10 years the valuation is better. More than 10 years
is too long, and companies usually have a life of between 20 and 40 years. Valuation should be something periodic and compared with other methods.
When we activate an expense, we take it out of our P&L and take it to the Balance Sheet. By not recording that expense in our P&L, we have less expense, and therefore, more profit. By amortizing that expense over
X years, we generate an annual amortization expense. The sum of which is equal to the total cost of the asset. Basically what we do is to spread the total cost of the asset over several years (and this does go to the P&L).
Top-down → El análisis va desde una vista de información global, hasta ir abordando los valores y las variables más detalladas y específicas.
Bottom-up → El análisis parte desde una posición individual hasta abordar las variables globales