You're about to create your best presentation ever

Get started with Prezi

Business Valuation Powerpoint Template

Create your presentation by reusing a template from our community or transition your PowerPoint deck into a visually compelling Prezi presentation.

Understanding Business Valuation

Transcript: Photos Reusable assets Understanding Business Valuation Ante molestie mattis arcu gravida viverra adipiscing volutpat. Ultrices eget viverra eu lectus ullamcorper. Consequat dictum tristique lectus augue felis nascetur amet non. Velit sit placerat tincidunt integer amet massa justo risus netus. Ornare sagittis malesuada varius cursus ipsum erat libero metus eget. Colors Assets Factors, Sectors, Process, and Case Studies 04 01 02 03 Title Aa Aa Subtitle S M W T T S F Paragraph Aa Aa Gathering Information Company X Financial Analysis Key Growth Potential 03 04 Market Trends Impact Understanding the Components of Business Valuation Sectors Worked With A business valuation comprises various components that play a crucial role in determining the worth of a company. Let's delve into the key elements that make up a valuation. Exploring the Diverse Sectors in Business Valuation The first step in business valuation involves collecting data on financial statements, market trends, and company operations. The valuation of Company X was based on a comprehensive review of its financial performance, cash flow projections, and historical growth rates. Identifying and evaluating Company X's growth potential was crucial in determining its valuation, focusing on expansion strategies, market reach, and scalability. Market trends in the industry significantly influenced the valuation of Company X, considering factors like competition, consumer demand, and technological advancements. Market Conditions and Valuation 03 Technology Valuation Outcome 03 Unveiling the Valuation Process Embark on a journey through the intricate steps of business valuation, from gathering information to determining value. Market conditions, including supply and demand dynamics, interest rates, and investor sentiment, heavily influence the valuation of businesses. An understanding of the current market scenario is crucial for accurately assessing the value of a company. Technology companies present unique valuation challenges due to rapid innovation and changing market trends. Factors like intellectual property and recurring revenue streams greatly influence their valuation. Exploring Company X Valuation Company X valuation involved a detailed analysis of financial statements, market trends, and growth potential. Valuation Process Determining Value Finance The valuation process concluded with a comprehensive assessment, resulting in a fair market value for Company X, aligning with its financial health and market positioning. Importance of Financial Analysis Components of a Valuation Healthcare business valuation valuation process choosing evaluation determining By considering all relevant factors and applying the chosen valuation method, the final step is to arrive at the estimated value of the business. Valuing financial institutions requires analyzing assets, liabilities, cash flow, and risk assessment. Factors like interest rates, economic conditions, and regulatory compliance significantly impact the valuation of financial entities. Valuing healthcare businesses involves intricate regulatory considerations, patient demographics, and reimbursement structures. Factors like service demand and competitive landscape have significant impacts on the valuation of healthcare entities. Components of a valuation include financial statements, market analysis, risk assessment, and growth prospects. Each component contributes to the overall assessment of a company's value and potential. Financial analysis is a critical aspect of business valuation as it helps in assessing the company's performance, stability, and growth potential. It involves examining financial statements, ratios, and key performance indicators to derive insights into the company's financial health. Company X Performance Metrics Choosing Valuation Methods Conducting Financial Analysis Real Estate Factors Influencing Valuation Analyzing key performance indicators and financial ratios provided crucial insights into Company X's operational efficiency and profitability, contributing to its overall valuation assessment. Different valuation methods, such as DCF, market multiples, and asset-based approaches, are selected based on the nature and industry of the business. Through financial analysis, factors like revenue streams, expenses, and profitability metrics are scrutinized to assess the financial health of the business. Real estate valuation is influenced by factors like location, property type, market trends, and income potential. Understanding property values, rental yields, and market fluctuations is crucial in accurately valuing real estate assets. Numerous factors influence the valuation of a business, such as industry trends, competitive landscape, economic conditions, and regulatory environment. Understanding these factors is essential for an accurate valuation assessment.

Understanding Business Valuation

Transcript: Understanding Valuation Methods Income Approach Importance of Valuation in Business Valuation methods provide essential frameworks for assessing a business's worth, influencing investment and strategic decisions. The Income Approach estimates a business's value based on its ability to generate future income. This method is crucial for businesses with predictable revenue streams, as it provides a clear financial projection for valuation. Valuation is essential for informed decision-making in mergers, investments, and financial reporting. Accurate valuation reflects a company's potential, ensuring stakeholders make strategic choices. Market Approach Discounted Cash Flow (DCF) Model The Market Approach values a business based on the sale prices of similar companies in the marketplace. This method is widely used due to its reliance on actual transaction data, making it a relevant benchmark for investors. The DCF Model calculates a business's value based on the present value of projected future cash flows. It requires making assumptions about growth rates and discount rates, highlighting the importance of accurate forecasting in valuation. Objectives of Valuation Asset-Based Approach The objectives of valuation include facilitating transactions, assessing investment opportunities, and ensuring compliance with legal requirements. It also aids in financial assessments and strategic planning. The Asset-Based Approach determines a company's value by calculating the net asset value, considering total assets minus total liabilities. It is particularly effective for businesses with significant tangible assets. Definition of Valuation Valuation refers to the process of determining the current worth of an asset or company. This is accomplished through various methods assessing financial performance, market conditions, and future earnings. Introduction to Valuation Mergers and Acquisitions Valuation determines a fair price for companies in M&A transactions. Proper valuation ensures that buyers and sellers make informed decisions about financial worth, minimizing the risks of overpayment or undervaluation. Investment Appraisal Applications of Valuation Valuation is a crucial process in business, providing a financial estimate of a company's worth, critical for strategic decisions. Investors rely on valuation to assess the potential return on investment. Techniques like DCF help calculate the present value of expected cash flows, guiding investment choices and risk assessments. Valuation plays a critical role in various business scenarios, influencing decisions in M&As, investments, financial reporting, and strategic management. Financial Statements Analysis Strategic Planning Requirements for Valuation In strategic planning, valuation helps organizations set realistic goals based on their market value. Understanding valuation assists businesses in aligning resources and strategies to optimize growth and profitability. Analyzing financial statements is essential for valuation as it provides insights into a company's performance, stability, and profitability. Critical components include income statements, balance sheets, and cash flow statements, which together reveal operational efficiency and financial health. Effective business valuation hinges on several critical requirements that ensure accuracy and reliability. Financial Reporting Valuation is integral to financial reporting, impacting the accuracy of asset valuations on balance sheets. Companies must adhere to accounting standards which require credible valuation methods for transparency. Industry Comparison Market Conditions Assessment Legal and Regulatory Considerations Understanding current market conditions is vital for accurate valuation. Economic factors such as interest rates, inflation, and market demand can significantly affect a company's earning potential and thus its overall value. Conducting an industry comparison helps benchmark a company against its competitors. This involves identifying key performance indicators (KPIs) and utilizing valuation multiples to assess relative performance and market position. Legal and regulatory frameworks shape the valuation process by impacting how valuations are conducted and reported. Compliance with standards ensures that valuations are credible and can withstand scrutiny in legal contexts such as disputes or transactions. Understanding Business Valuation A Comprehensive Guide to Valuation Requirements and Approaches

Coach- Business Valuation

Transcript: History Financial Data Collected from 2011 to 2013 Below -2.22 threshold, however certain variable discrepancies are observed IPO Forecast M-Score SGAI and AQI Moderate Increase DEPI, GMI and SGI Moderate Decrease Moderate Decrease in LVGI, Company notes a decrease use of Credit Facilities Large Fluctuation of TATA, 82.52% increase over last year Questions?? Substitutes: N/A Competition: Highly Competitive Market over saturated Declining market share Dooney & Burke Kate Spade Michael Koors Buyers: Recent changes in consumer behavior from financial crisis and technology Suppliers: Increased unit costs eroding margins Industry: Luxury Accessories 2000-2012 Non-Financial Analysis Historical Data Intrinsic Value Analysis Filing date stock price $52.70 Sixty day average $53.06 To compute a PEG ratio of 1, implicit g would be significantly higher than 7% Cost of Equity M-Score Variables Founded in Manhattan in 1941 High-quality Billfolds and Handbags Late 1960s expanded into small accessories and eyewear 1985 sale to Sara Lee for $30M 70% of Sales are to North American customers 420 Stores in Europe and Asia 544 Full Priced and Outlet Stores in the US Company announced commencement of semi-annual sales (30-50% discount) Company announced 70 North American store closings for FY 2015 Stock Price fell 31.35% since March 25, 2014 Forecast Horizon and Terminal Value Trends in Business and Strategy PE = 8.98 PB = 6.31 2000 IPO, spinoff from Sara Lee Initial Stock Price was approximately $16 per share Raised $118.08M "Old-World" US Firm, unlike increasing presence of Tech and service companies 2013 Financial Statement Valuation and Forecast Net Sales is highly correlated to Number of Stores and Square Footage Decreasing trend in Operating Income per Store and Net Sales per Store Equity Valuation CAPM Model Value of 10.32% Risk-free Rate 2.55% ß of 1.16 Risk Premium of 6.7% Market Cap of $9.35B Abnormal Earnings Enjoyed increasing year-over-year sales growth, store growth and stock appreciation However, failed to offer differentiated products, competition of similar but comprehensive luxury lifestyle brands increased Recent decrease in market share Optimistic Valuation Decline Stage Valuation Lower Growth Valuation

Business Valuation

Transcript: Business Valuation Introduction Our team Robert Diaz Iliana Gonzalez Yamanica St. Marc Ada Stival Business Our Business Mini supermarket Price: $299,000 Gross Revenue: $1,041,000 FF&E: $80,000 Inventory: $140,000 Cash flow: $183,888 Pros Pros & Cons Low rent - $4253 Furniture & equipment included Training & Support - 14 days & $0 Lotto: $1700/mo Rent: $1000/mo Cons Cons Perishable items Inventory Specialization Valuation Method Valuation Method Cost Approach Method Replacement cost of asset Deduction for wear & tear Evaluate Cost of: Land Building Parking lot Research Building shell: $60.45/sq ft = $253,890 Store outfitting: $95,214 Appliances: $57,949 Parking lot: 10 spaces = $20,000 Depreciation: 3% per year * 5 years = (64,057.95) Total: $362,995 Research Conclusion Is it a good deal? MAYBE! Construct: $362,995 Buy: $299,000

Business Valuation

Transcript: Valuation Assignment - Multibrand company that designs and markets a broad range of toys and consumer products - Action Figures, Art Activity Kits, Sports Activity Toys, Vehicles, Construction Toys, Pet Toys, etc. - Stock Price closed on 12/31/09 at $19.49 per share Target Company Estimate intrinsic value of Toy Co. Inc.'s equity on 12/31/09 using the DCF model. Treat all the results for the fiscal year ended 2010 - 2014 as projections. - Cost of Debt: Estimated borrowing rate is 6.125% with a marginal tax of 27.29%, resulting in an after-tax cost of debt of 4.5% - Cost of Equity: Levered equity beta for Toy Co. is .777; using the capital asset pricing model with a 10-year Treasury bond yield of 4.66% and a market risk premium of 7.67% produces and estimate of the levered cost of equity of 10.57% - Other: Diluted Shares of Common Equity outstanding on 12/31/09 = 422,050,500 shares; Closing Stock Price = $19.49; Debt Value Outstanding 12/31/09 = $618,100,000 - WACC: Using the target debt to value ratio of 6.99%, the WACC is approximately 10.14% Mini-Case: TM Toys Inc. Conclusion Toys-and-games Industry - $60 Billion Industry - Dominated by: - Mattel (Barbie, Hot Wheels, Fisher Price) - Hasbro(G.I. Joe, Tonka, Playskool) - Achieve success through scoring the next big hit: "must-have" toys Data

powerpoint template

Transcript: Nobody knows babies like we do! Quality products . Good Customer service. Every Kid really loves this store.. BABYLOU ABOUT US About Us BabyLou was established in 2004. It has been more than a decade since we started, where we have ensured to take care of every need and want of every child and infant under one roof, true to the caption “NO BODY KNOWS BABIES LIKE WE DO”. Our benchmark is to provide 100% customer service and satisfaction and continue to deliver the same with a wide range of toys, garments and Baby Products. Play and Create We Are Best 01 02 03 Block games Building Blocks help Kids to use their brain. PLAY TO LEARN in Crusing Adventures Our Discoveries Enjoy a sunny vacation aboard a luxury yacht with the LEGO® Creator 3in1 31083 Cruising Adventures set. This ship has all the comforts you need, including a well-equipped cabin and a toilet. Sail away to a sunny bay and take the cool water scooter to the beach. Build a sandcastle, enjoy a picnic, go surfing or check out the cute sea creatures before you head back to the yacht for a spot of fishing. Escape into the mountains Disney Little Princes in Also available for your Babies..... Also... Out of The World… Our reponsibility BABYLOU…. Our Responsibility All children have the right to fun, creative and engaging play experiences. Play is essential because when children play, they learn. As a provider of play experiences, we must ensure that our behaviour and actions are responsible towards all children and towards our stakeholders, society and the environment. We are committed to continue earning the trust our stakeholders place in us, and we are always inspired by children to be the best we can be. Innovate for children We aim to inspire children through our unique playful learning experiences and to play an active role in making a global difference on product safety while being dedicated promoters of responsibility towards children.

Business Valuation

Transcript: Decomposition of return on equity /ROE/ Solution: Introduction C. Estimate the value of Hugo Boss’ equity on April 1, 2009 using the above forecasts and assumptions. Check that the discounted cash flow model, the abnormal earnings model and the abnormal earnings growth model yield the same outcome. Solution: Bargaining power of suppliers/Low/ Team 1: N.Sodontuya /103035176/ G.Dolgorsuren /103035156/ N.Buyandelger /103035162/ E.Turmunkh /103035173/ Decomposing Profitability: Alternative Approach Asustek Founded in 1989 Distinguishing operating, investment and financing components in ROE Starite Company is valued at €20 per share. Analysts expect that it will generate free cash flows to equity of €4 per share for the foreseeable future. What is the firm's implied cost of equity capital? Content Problem 1: Bargaining power of buyers /Medium to High/ Problem 2: A. Calculate free cash flows to equity, abnormal earnings, and abnormal earnings growth for the years 2009 – 2011. Rivalry in existing firms /High/ Decomposing Profitability: Traditional Approach Definitions of accounting items used in ratio analysis B. Assume that in 2012 Hugo Boss AG liquidates all its assets at their book values, uses the proceeds to pay off debt and pays out the remainder to its equity holders. What does this assumption imply about the company’s: a. Free cash flow to equity holders in 2012 and beyond? b. Abnormal earnings in 2012 and beyond? c. Abnormal earnings growth in 2012 and beyond? Introduction Strategy analysis Decomposition of ROE Case Problems Threat of new entrants /High/ Solution: Threat of substitute products/Medium/ Strategy Analysis Rivalry in existing firms /High/ One of top 3 consumer notebook brand

Business Valuation

Transcript: What is business valuation? by Tatiana Svetlanská The Traditional Venture Capital Method - uses the firm´s net income to get the explicit value in the projection period. It obtains the continuing or residual value in the implicit period by applying a P/E to the projected earnings. It uses very high discount rate in discounting the value into the present time. The First Chicago Method - uses the firm´s cash flows during the projection period using three selected scenarios representing three performance states for the firm: best, moderate and worse states (success, neutral or sideways and failure states). For these states it obtains continuing or residual value in the implicit period by applying proper multiplier to the financial projection. It calculates the expected cash flows for the firm by taking probability-weighted sum of three scenarios. It also obtains the present value for the two periods cash flows using a discount rate equal to the opportunity cost of capital The Multiplier Approach - considers value as a plain multiple of a selected major variable. This variable, such as firm´s cash flow is multiplied by a factor to reach an approximate value of the firm. Cash flow here refer to the firm´s ability to pay for the company´s debt obligations and equity payments such as dividends. The multiplier is determinated by several factors related to the company´s strength and growth (status, market conditions). It is number between 3-10. V= m[EBITDA + Ps - Pb] V/estimated value of a business; m/multiplier; Ps/payment to seller; Pb/payment to buyer Thank you! The Capitalization Approach - major variables can be projected for a certain future period and discounted into their present value using a firm capitalization rate to estimate the firm´s value. V= PV(FCFt) + PV(RES) Business related determinats - current and reliable value for the firm in cases of financing, selling or merging the comapny, as well as in cases of selling stock to employees and other similliar events - firm valuation is also required by federal and state authorities - for tax purposes, inheritance, property transfer, going public... Valuation techniques Varieties of the Capitalization Approach FCF= EBIT + depreciation - [tax rate + capital exps + increase in operating working capital] RES - is the present value of the residual. This is the period beyond the explicit period (5 years) and into the future. The residual or the implicit period is usually summed up in one discounted value. Since the projection period is 5 years, FCF n+1 would be FCF 5+1 = FCF6. - type of business and industry, - size and performance, - history, current and projected state, - development stage and growth rate, - management and control, - business statistics, - reason of valuation. Valuation tools There are two capitalization rates; the overall rate and the equity rate. The overall capitalization rate is usually used for discounting the future income before interest and after taxes. The equity capitalization rate is used to discount the firm´s future net value. To estimate future income or earnings stream we can employ simple econometric method of least squares regression, exponetial curve fitting, geometric progressions or weighted average. ..any dollar spent on the business should continue to yield more than dollar throughout the future of the business, and any sure dollar is more preferred than any speculative dollar. - Valuation of a business would eventually come down to assesing the ability of the business to generate cash flow from the point of sale and on into the future. Market Price of Shares - market price of the firm´s stock compare to similar firm stock´s market price, - no market restrictions - freedom of information to all investors, - practically it is very difficult to find companies that are similar. Capitalization of Major Variables - obtaing present value of a stream of future cash flow. Income, earnings, cash flow, dividends, sales and revenues can all be capitalized and serve as indicator for firm´s value. The capitalization rate would implicitly count for the characteristics of firm. Sales revenue is a big determinant of value for some firms such as those in technology, internet, media and food services (for instatnce number of visitors of page, price-earning ratio) Different firms use different multipliers and benchmarks depending on many factors related to both internal and external status. Book Value of Assets and Shares - value documented in the firm´s records - old and common tools for valuation, - criticized for inaccuracy and lack of connection to the market value, - no practical significance unless all assets are appraised at the current market prices, and intangible assets are involved. Business Valuation The common length of projection is 5 years. Value of business

Explore our templates for more presentation inspiration

Sales KickOff - Rocket

Description: The sky’s the limit. Boost your new sales initiative into orbit with an engaging and compelling SKO presentation. This template features a effective sales kickoff theme that makes it easy to be engaging. Like all Prezi SKO templates, it’s fully customizable with your own information.

Marketing Proposal Template for Powerful Presentations | Prezi

Description: Catch the eye and engage the imagination with this cool-looking Prezi proposal template. The bold, bright design and highly dynamic theme all but guarantee success for your next sales or marketing proposal. All Prezi presentation templates are easily customized.

Customer Stories - Office

Description: Storytelling is at the heart of great service. Use this stunning, customizable business presentation template to highlight employees who do exceptional work or position your customers as the heroes of your business.

Quarterly Business Review - Downtown

Description: Add some color to your quarterly business review with this vibrant business presentation template. The bold visuals in this business template will make your next QBR a memorable one.

Now you can make any subject more engaging and memorable

Get started with Prezi