Enterprise and equity value, P/E, P/B and EV/EBITDA, comparable companies, discounted cash flow, cost of capital and the leveraged buyout model, each calculated step by step.
What enterprise value and equity value measure, the full bridge between them, fully diluted shares and which multiples pair with each.
How to calculate and read the P/E ratio: trailing, forward, normalized and CAPE, justified P/E from the Gordon growth model, and its distortions.
How to calculate P/B and tangible book, why it anchors bank and insurer valuation, justified P/B from ROE, and when the ratio breaks down.
The three enterprise value multiples: formulas, when to use each, how D&A and leases change them, LTM versus NTM, and a worked valuation.
Growth-adjusted and cash-based valuation measures: PEG, levered and unlevered FCF yield, dividend yield, payout and total shareholder yield.
How to build a comps table: selecting peers, calendarizing and adjusting, summary statistics, and turning a multiple range into an implied share price.
How to build a precedent transaction set, derive deal multiples from offer terms, measure control premiums and adjust for cycles and synergies.
Build a DCF step by step: unlevered free cash flow, a five-year forecast, terminal value two ways, discounting conventions and a WACC sensitivity.
How to estimate WACC: CAPM cost of equity, unlevering and relevering beta, cost of debt, market weights, and size and country risk adjustments.
A complete leveraged buyout model for one company: sources and uses, projections, a debt schedule with a cash sweep, exit value, MOIC and IRR.
Decompose a buyout gain into EBITDA growth, multiple expansion and debt paydown, see why ordering matters, and read IRR against MOIC and hold.
How to compute an acquirer's pro forma EPS for stock, cash and mixed deals, the P/E rule, breakeven synergies, and why accretion is not value.