
Publication number: ELQ-21834-1
View all versions & Certificate

CEQ Method Valuation Model
Valuation by the CEQ Method based on Discrete Scenario Cash Flow Forecast
VP, Partner Solutions at Major League Baseball Advanced Media
Description
In the Certain Equivalent (CEQ) Method, expected cash flows of financial claims are valued. Also, risky cash flows are adjusted
to their certain equivalent by CAPM (from σri to σci). The risk free rate is the discount rate. (Diego Zunino, April 2011)
=> It is easier to implement than RADR for new ventures
=> You have the same results with consistent assumptions as RADR (risk adjusted discount rate method)
(www.quizlet.com)
This model enables you to compute, over 5 years:
- The Estimated Cash Flow For the Project
- The Standard Deviation of Cash Flows
- The Market Risk Premium
- The Present Value of Expected Cash Flows and the Sum of PVs
- The Annualized Required Return
- The Standard Deviation of Returns
- Covariance with Market
- Beta
INPUTS:
- Cash Flows (Success Scenario, Expected Scenario, Failure Scenario) - Amount year 0 to 5 + Probability
- Risk free rate
- Market rate
- Market Standard Deviation
- Market Correlation
Note: For the RADR method see here: https://www.eloquens.com/method/M0Vibp/radr-method-valuation-model
From "Entrepreneurial Finance", by Janet Kilholm Smith, Richard L. Smith and Richard T. Bliss
Purchase the book here: https://www.amazon.fr/dp/0804770913
This business tool includes
1 Excel Model
Reviews
Dhaval Jobanputra(last updated: 21/12/2018 07:02)
Huyen Ho864(last updated: 19/12/2018 07:37)
Quan Quach(last updated: 13/12/2018 07:25)
Ing Fernando Hidalgo(last updated: 08/11/2018 22:56)
Ramakrishnan Venkateswaran(last updated: 09/10/2018 10:37)
Eiad Al Saba(last updated: 06/09/2018 07:06)
Roberto Massimo CABONI(last updated: 09/07/2018 12:58)
先森 李(last updated: 28/05/2018 16:52)
桥 王(last updated: 22/05/2018 12:00)
Jireh Tsai(last updated: 16/05/2018 08:37)
Don Donowitz(last updated: 29/04/2018 07:34)
Daniel Sullivan(last updated: 26/02/2018 22:34)
People using this tool also downloaded
RADR Method Valuation Model
Valuation by the RADR Method based on Discrete Scenario Cash Flow Forecastfinancevaluationcost of capitalcash flowsprivate equityentrepreneurradrrisk adjusted discount ratepresent values1,518 remove_red_eyeDiscussfreeby Kevin Hanley
All in One Private Equity Model
Used by Investment Professionals at Private Equity and IB Firmsfinancevaluationdcfevaprivate equityinvestment bankinglbofinancial statements5,082 remove_red_eye2 chat_bubble$180.00by John Swan
Valuation - Investor's & Entrepreneur's partial commitment
Calculate the Net Present Value (NPV) for the Entrepreneurs Commitment when Partialventurefinancevaluationcash flownpvnet present valueentrepreneurpartial commitment378 remove_red_eyeDiscussValuation Partial Commitment of the Entrepreneur
Learn how to value an entrepreneur's partial commitment to a ventureinvestmentventurefinancevaluationpresent valuereturn on investmentnet present valueentrepreneurpartial commitmentunder diversified341 remove_red_eyeDiscussBusiness Valuation Template
Determine the value of your firm using three methods to use in different buy/sell situationsacquisitionfinancevaluationprivate equitynet asset valuediscounted future earningsassets and earningsprivate firms547 remove_red_eyeDiscussDiscounted Cash Flow (DCF) Model
A step by step Discounted Cash Flow Analysis Tutorial (DCF model)analysisfinancevaluationdcfprivate equityinvestment bankingdiscounted cash flowvalue of a businessdcf model27,936 remove_red_eye25 chat_bubbleLBO model - Leveraged Buyout Analysis
A step by step LBO model tutorial. It is easy to use and we provide support if needed. Have fun modeling!financevaluationleveraged buyoutprivate equityinvestment bankinglbom&amergers & acquisition12,848 remove_red_eye7 chat_bubbleVenture Capital Method (Single Round Financing)
A full model enabling an entrepreneur to understand assumptions of both sides of the table in a single round financinginvestmentfinancevaluationfinancingventure capitalassumptionsentrepreneursingle roundunstaged investmentstaged investment10,001 remove_red_eyeDiscussEntrepreneur's Cost of Capital Template
Estimate the statistical parameters for determining an entrepreneur's cost of capitalventurefinancevaluationcash flowcost of capitalreturn on investmententrepreneurpartial commitmentwealth allocation447 remove_red_eyeDiscussLBO Model - Company Valuation Tool
An LBO Model to learn how to Value all types of Businesses Like a Private Equity Professionalfinancevaluationleveraged buyoutprivate equityfinancial modelinglbolbo analysislbo model2,481 remove_red_eyeDiscussfreeby Jon Taylor
More tools from Kevin Hanley
Any questions on CEQ Method Valuation Model?
The user community and author are here to help. Go ahead!