tailieunhanh - Tài liệu : valuation for m a Building Value in private companies phần 8

chủ sở hữu trên cơ sở lâu dài mối quan hệ giữa họ tính toán là 20% cap tốc độ dòng chảy tương lai tiền net chuyển đổi cổ phần với tỷ lệ chiết khấu dòng tiền ròng năm tới vốn cổ phần bởi thêm tỷ lệ tăng trưởng ngụ ý lớn tỷ lệ công chúng Giảm công ty dòng chảy tương lai tiền mặt ròng của vốn cổ phần trước | 204 Reconciling Initial Value Estimates company s risk profile and resulting cost of capital adjusted for the risk profile of the target company. Invested capital versus equity Consider that valuation for merger and acquisition usually employs the invested capital model to prevent financing considerations from influencing operating value. Proper application requires appropriate and consistent use of invested capital returns and rates of return. In use of the invested capital model look for potential distortions to the company s weighted average cost of capital WACC caused by extremes in the company s degree of financial leverage. Consider whether market conditions would permit that capital structure and what debt and equity costs would be appropriate for that degree of leverage. Recognize that the debt and equity weights in the WACC computation should be made based on market values rather than book values which may require use of the iterative process or the shortcut formula in the computation of the WACC. Measurement of return Consider the appropriateness of the return stream chosen for the assignment. Net cash flow to invested capital generally provides the most precise measure of cash return to capital providers and it is the return for which the most reliable rates of return are available. Other measures of return are generally less accurate are more susceptible to manipulation and usually must rely on less defendable rates of return. Consider the company s past operating performance and why it generated that performance in assessing the likelihood of it achieving its forecasted future performance. Consider the likelihood of achieving the forecast given economic and industry conditions and the company s competitive position in light of its strategic advantages and disadvantages. Income Approach Review 205 Review any normalization adjustments made for nonoperating and nonrecurring items of income and expense recognizing that the objective in making the .