TVP Insights (BLOG)
INTRODUCTION – PART 1
All the previous Ports of Call have provided snapshots of concepts that impact firm value. These are technical in nature and application, which leads to the use of a firms ...
This Port of Call introduces the concept of Implied Value that results from a simple equation based upon two variables, EBITDA and the Multiple.
The resulting equation is:
Implied Firm Value = Firm...
As noted in our previous exploration cash flow is the touch stone of valuation methodologies, and business in general.
EBITDA is widely used in practice as a convenient “proxy” for cash, and no journey...
Cost of Capital (COC) is a critical concept in understanding firm value, defined as that rate of return (return on investment) an investor must receive to entice the investor to commit capital to the proposed...
Valuation methodologies are rooted in the concept of discounted cash flow. Any excursion in finance and firm value would be incomplete without an exploration of this basic financial concept. All TVP concepts...
We start our journey with the concept of “Noise” because noise creates difficult problems with the objective and rigorous understanding of firm valuation and value creation.
The problem manifests in the...