Valuation Model models
What is Valuation?
Valuation is the process of calculating the current worth of an asset or liability. Examples of assets are stocks, options, companies, or intangible assets. Concerning liabilities, they can be bonds issued by a company.
Common terms used when discussing the value of an asset or liability are market value, fair value, and intrinsic value.
Put simply, the value to be derived is the present value of all the future benefits (or cashflow) of the given asset or liability. This can calculated in various ways, with the use of financial and valuation tools, to determine the magnitude and risk of such future benefits. Take the example of an analyst determining the value of a company. He will consider the company’s management, the composition of its capital structure, the prospect of future earnings and market value of assets to come to terms with its value.
Some sample ways to value assets and liabilities are the following:
Comparative valuation: Comparing the asset to other similar assets and evaluating its cashflow potential.
Future cash flows: the value of the asset can be based on future cash flows (that is, if they produce cash flows). For a stock, for example, it would stem from its dividends or share price appreciation. This can be done in multiperiod models (DCF models) or single period models (Gordon model).
Option pricing Excel models: for particular types of financial assets. Black-Scholes-Option pricing model is one way of doing it.
All in all, Valuation in finance is key for many reasons. It is needed in investment analysis, capital budgeting and acquisitions transactions, financial reporting, or taxable events.
If you’d like some Valuation Excel Model Templates to facilitate your valuation, you will find the above valuation techniques and many more on the Eloquens catalogue. Also, if you have any questions or would like to discuss matters about a given tool, you can contact our authors whom will happily get back to you.
For more in depth information about Valuation, feel free to have a look through these links:
- Model for valuing options that result in dilution of the underlying stock.144 remove_red_eye
Valuation of an Income Generating PropertyThis model can be used to value property317 remove_red_eye
Merger & LBO Model ValuationThis LBO model in excel analyzes the value of equity and the firm in a leveraged buyout operation.1,201 remove_red_eye
Value of Control in a FirmThis model analyzes the value of control in a firm.538 remove_red_eye
Cash Flow Return on Investment (CFROI) for a FirmThis model calculates CFROI497 remove_red_eye
Merger Synergy ValuationThis model estimates the value of synergy in a merger.223 remove_red_eye
Free Cash Flow for the Firm (FCFF) ValuationValue firms with operating income that is either positive or can be normalized to be positive250 remove_red_eye
FCFF (Free Cash Flow for the Firm) with exposure to country riskAllows the user to enter a measure of company exposure to country risk when making a valuation for a firm141 remove_red_eye
Gordon Growth ModelValue the equity in a stable firm paying dividends, with stable growth130 remove_red_eye
Free Cash Flow for the Firm (FCFF) Stable Growth ModelValue a stable firm on the basis of free cashflows to firm.145 remove_red_eye
Comparing Dividend Discount Model (DDM) and Free Cash Flow to Equity (FCFE) Models: Two Stage ValuationThis model compares the DDM and FCFE models for a Two Stage Valuation300 remove_red_eye
Valuation: Free Cash Flow to Firm (FCFF) vs Free Cash flow to Equity (FCFE)Valuation model that reconciles FCFF and FCFE457 remove_red_eye
Leveraged Buyout Analysis LBO Excel ModelA step by step LBO analysis tutorial and LBO model Excel template2,453 remove_red_eye
Abercrombie & Fitch Valuation ModelA full PDF of an Excel Valuation Model created for fundamental analysis of Abercrombie & Fitch ($ANF) in 2006146 remove_red_eyefreeby Lindsay Meyer
All in One Private Equity ModelUsed by Investment Professionals at Private Equity and IB Firms1,279 remove_red_eye$180.00by John Swan
movieProperty Valuations ModelingSimple Property Valuation Model showing the 3 primary methods for valuing property assets.318 remove_red_eye$15.00by Lance Rubin
Discounted Cash Flow (DCF) ModelA step by step discounted cash flow analysis tutorial (DCF model)3,088 remove_red_eye
Leveraged Buyout LBO Model TemplateA full Leveraged Buyout LBO model template for a project to understand its different components and work with your own.825 remove_red_eyefreeby John P. Burns
Startup Valuation VC Method + excel SpreadsheetExcel template made to understand how VCs value the money that will be used to invest in a startup704 remove_red_eye
Discounted Cash Flow (DCF) Model (Academic Quality)A simple DCF model serving as an academic exercise to understand how financial modeling works.584 remove_red_eyefreeby Joshua Wong
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