What is analyzed in the company's finances?

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To define a company's valuation, a predictive analysis is performed using different indicators. Below, we have separated 4 common methods for defining it. Check them out!

Discounted cash flow
Unlike the usual cash flow, in the discounted cash flow, the estimate of the cambodia phone number list inflows and outflows is made without considering economic changes or its strategies, using future predictions and avoiding the common tendency of cash flow , which is to present decreasing results.

Market multiples
In this method, the company is usually analyzed by its indicators. The most commonly used is EBITDA, which shows profit before taxes, interest, depreciation and amortization.

However, the result tends not to be as accurate, as it is a comparison model, leaving aside the specific characteristics of the business, as well as not focusing on the current moment of the company, but on the entire period.

Accounting Valuation
For this method, accounting information is extremely important — in fact, the main data used is net equity. In this method, amortization and depreciation at a given time are assessed, but tangible assets, such as brands, franchises, among others, are not.

Liquidation Valuation
It is quite common in the case of companies that are closing down, hence the name. In this case, the assets are added and then the liabilities are subtracted. In addition, time is taken into account, especially short-term estimates to know how much the remaining assets are worth.