About this resource
Valuation is often taught as a precise science. In practice, it is a structured estimate — and understanding where the uncertainty lives is as important as knowing the formula.
Two methods, one project
This project works through 2 valuation approaches on the same company. The discounted cash flow model requires you to build 3-year revenue projections, estimate a terminal value, and choose a discount rate — each decision is explained and challenged.
The comparables approach uses EV/EBITDA and P/E multiples from a peer group of 6 listed companies. You will see how the choice of peer group can shift the implied valuation by 30% or more, which is exactly the kind of sensitivity that matters in real analysis.
What the project produces
The output is a two-tab spreadsheet: one tab for the DCF, one for comparables. A short written summary — roughly 400 words — reconciles the 2 outputs and states a reasoned valuation range rather than a single number.
A valuation range is more honest than a point estimate, and this project treats it that way throughout.
Scope and assumptions
The company used is a mid-sized European manufacturer with publicly available financials. The model does not cover M&A adjustments, synergy estimates, or sector-specific valuation methods. Those are advanced topics that build on what this project establishes.