Project Finance Financial Models

The sheet describes different valuation methods of the food industry. For the purpose of analysis, different companies in the food industry are considered. There are 4 types of valuation methods considered in this sheet.

In this sheet, different valuation methods of the food industry are calculated and considered in order to understand how the food industry and the companies of the food industry are valued.

First method of valuation is Comparable analysis of different companies of the food industry based on the stock prices, market capitalization, enterprise value, revenue, CAGR, EBITDA margin.
Second method is Precedent Analysis It is a method of company valuation where past M&A transactions are used to value a comparable business today. Commonly referred to as “precedents,” this method of valuation is common when trying to value an entire business as part of a merger/acquisition and is commonly prepared by analysts working in investment banking, private equity, and corporate development.
Third method of valuation is Venture Capital Method, the venture capital method (VC Method), as the name implies, is most commonly used in the venture capital industry and for valuing startup ventures. As discussed in separate lectures, investors seek to capitalize on their investment via an exit at some future date in the startup’s lifecycle.

Fourth method of valuation is Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future. This applies to the decisions of investors in companies or securities, such as acquiring a company or buying a stock, and for business owners and managers looking to make capital budgeting or operating expenditures decisions.