Valuation Hub
Master DCF, IRR, WACC, multiples, and interview-ready valuation workflows with examples and calculators.
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Hub concepts directory
Click any element to see exact definitions, formulas, and real-world examples.
Internal Rate of Return (IRR)
IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
Discounted Cash Flow (DCF)
DCF is a valuation method that estimates the value of an investment based on its expected future cash flows, discounted to present value.
EV/EBITDA Multiple
EV/EBITDA compares a company's Enterprise Value to its Earnings Before Interest, Taxes, Depreciation, and Amortization, providing a capital-structure-neutral valuation metric.
Enterprise Value (EV)
EV represents the total value of a company's operating business, independent of capital structure: Market Cap + Debt - Cash + Minority Interest + Preferred Stock.
Equity Value
Equity value (or market cap) is the value attributable solely to shareholders: Enterprise Value - Debt + Cash - Minority Interest - Preferred Stock.
Intrinsic Value
Intrinsic value is the true underlying worth of an asset based on fundamental analysis of future cash flows, independent of current market price.
Net Present Value (NPV)
NPV is the difference between the present value of cash inflows and outflows over a period of time, discounted at a specific rate.
Terminal Value
Terminal value represents the value of a business beyond the explicit forecast period in a DCF model, assuming continued operations.
Weighted Average Cost of Capital (WACC)
WACC represents a company's blended cost of capital across all sources, including equity and debt, weighted by their proportion in the capital structure.
Mid Year Convention - Beginner Guide
Mid Year Convention is a key Valuation concept used to build a clear foundation in practical finance workflows.
Exit Multiple - Beginner Guide
Exit Multiple is a key Valuation concept used to build a clear foundation in practical finance workflows.
Terminal Value - Beginner Guide
Terminal Value is a key Valuation concept used to build a clear foundation in practical finance workflows.
Enterprise Value - Beginner Guide
Enterprise Value is a key Valuation concept used to build a clear foundation in practical finance workflows.
Sum of the Parts - Beginner Guide
Sum of the Parts is a key Valuation concept used to build a clear foundation in practical finance workflows.
Valuation Football Field - Beginner Guide
Valuation Football Field is a key Valuation concept used to build a clear foundation in practical finance workflows.
Net Debt - Beginner Guide
Net Debt is a key Valuation concept used to build a clear foundation in practical finance workflows.
Burn Multiple - Beginner Guide
Burn Multiple is a key Valuation concept used to build a clear foundation in practical finance workflows.
Market Approach - Beginner Guide
Market Approach is a key Valuation concept used to build a clear foundation in practical finance workflows.
Perpetuity Growth - Beginner Guide
Perpetuity Growth is a key Valuation concept used to build a clear foundation in practical finance workflows.
Fair Value Hierarchy - Beginner Guide
Fair Value Hierarchy is a key Valuation concept used to build a clear foundation in practical finance workflows.
Operating Margin - Beginner Guide
Operating Margin is a key Valuation concept used to build a clear foundation in practical finance workflows.
Level 3 Valuation - Beginner Guide
Level 3 Valuation is a key Valuation concept used to build a clear foundation in practical finance workflows.
Net IRR - Beginner Guide
Net IRR is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Cohort Valuation - Beginner Guide
Cohort Valuation is a key Valuation concept used to build a clear foundation in practical finance workflows.
Minority Discount - Beginner Guide
Minority Discount is a key Valuation concept used to build a clear foundation in practical finance workflows.
Value Driver Tree - Beginner Guide
Value Driver Tree is a key Valuation concept used to build a clear foundation in practical finance workflows.
EBIT Multiple - Beginner Guide
EBIT Multiple is a key Valuation concept used to build a clear foundation in practical finance workflows.
Cash Free Debt Free - Beginner Guide
Cash Free Debt Free is a key Valuation concept used to build a clear foundation in practical finance workflows.
Comparable Company Analysis - Beginner Guide
Comparable Company Analysis is a key Valuation concept used to build a clear foundation in practical finance workflows.
EBITDA Margin - Beginner Guide
EBITDA Margin is a key Valuation concept used to build a clear foundation in practical finance workflows.
Discount Rate - Beginner Guide
Discount Rate is a key Valuation concept used to build a clear foundation in practical finance workflows.
Hurdle Rate - Beginner Guide
Hurdle Rate is a key Valuation concept used to build a clear foundation in practical finance workflows.
Valuation Assertion - Beginner Guide
Valuation Assertion is a key Audit concept used to build a clear foundation in practical finance workflows.
Adjusted EBITDA - Beginner Guide
Adjusted EBITDA is a key Valuation concept used to build a clear foundation in practical finance workflows.
Bridge from EV to Equity Value - Beginner Guide
Bridge from EV to Equity Value is a key Valuation concept used to build a clear foundation in practical finance workflows.
Unlevered Beta - Beginner Guide
Unlevered Beta is a key Valuation concept used to build a clear foundation in practical finance workflows.
Working Capital Peg - Beginner Guide
Working Capital Peg is a key Valuation concept used to build a clear foundation in practical finance workflows.
Dividend Discount Model - Beginner Guide
Dividend Discount Model is a key Valuation concept used to build a clear foundation in practical finance workflows.
Unit Economics Valuation - Beginner Guide
Unit Economics Valuation is a key Valuation concept used to build a clear foundation in practical finance workflows.
Direct Cash Flow - Beginner Guide
Direct Cash Flow is a key Accounting concept used to build a clear foundation in practical finance workflows.
Cost of Debt - Beginner Guide
Cost of Debt is a key Valuation concept used to build a clear foundation in practical finance workflows.
Sensitivity Analysis - Beginner Guide
Sensitivity Analysis is a key Valuation concept used to build a clear foundation in practical finance workflows.
DCF Model - Beginner Guide
DCF Model is a key Excel/Modeling concept used to build a clear foundation in practical finance workflows.
Normalized EBITDA - Beginner Guide
Normalized EBITDA is a key Valuation concept used to build a clear foundation in practical finance workflows.
P B Ratio - Beginner Guide
P B Ratio is a key Valuation concept used to build a clear foundation in practical finance workflows.
Residual Income Model - Beginner Guide
Residual Income Model is a key Valuation concept used to build a clear foundation in practical finance workflows.
Beta Relevering - Beginner Guide
Beta Relevering is a key Valuation concept used to build a clear foundation in practical finance workflows.
SaaS ARR Multiple - Beginner Guide
SaaS ARR Multiple is a key Valuation concept used to build a clear foundation in practical finance workflows.
WACC - Beginner Guide
WACC is a key Valuation concept used to build a clear foundation in practical finance workflows.
Gross IRR - Beginner Guide
Gross IRR is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
IRR - Beginner Guide
IRR is a key Valuation concept used to build a clear foundation in practical finance workflows.
Terminal Growth Rate - Beginner Guide
Terminal Growth Rate is a key Valuation concept used to build a clear foundation in practical finance workflows.
LTV CAC - Beginner Guide
LTV CAC is a key Valuation concept used to build a clear foundation in practical finance workflows.
Asset Approach - Beginner Guide
Asset Approach is a key Valuation concept used to build a clear foundation in practical finance workflows.
Capitalization Rate - Beginner Guide
Capitalization Rate is a key Valuation concept used to build a clear foundation in practical finance workflows.
Equity Value - Beginner Guide
Equity Value is a key Valuation concept used to build a clear foundation in practical finance workflows.
Purchase Price Allocation - Beginner Guide
Purchase Price Allocation is a key Valuation concept used to build a clear foundation in practical finance workflows.
FCFF - Beginner Guide
FCFF is a key Valuation concept used to build a clear foundation in practical finance workflows.
Interest Rate Risk - Beginner Guide
Interest Rate Risk is a key Fixed Income concept used to build a clear foundation in practical finance workflows.
Goodwill Impairment - Beginner Guide
Goodwill Impairment is a key Valuation concept used to build a clear foundation in practical finance workflows.
DCF - Beginner Guide
DCF is a key Valuation concept used to build a clear foundation in practical finance workflows.
P E Ratio - Beginner Guide
P E Ratio is a key Valuation concept used to build a clear foundation in practical finance workflows.
Rule of 40 - Beginner Guide
Rule of 40 is a key Valuation concept used to build a clear foundation in practical finance workflows.
FCFE - Beginner Guide
FCFE is a key Valuation concept used to build a clear foundation in practical finance workflows.
Free Cash Flow - Beginner Guide
Free Cash Flow is a key Valuation concept used to build a clear foundation in practical finance workflows.
Scenario Analysis - Beginner Guide
Scenario Analysis is a key Valuation concept used to build a clear foundation in practical finance workflows.
Precedent Transactions - Beginner Guide
Precedent Transactions is a key Valuation concept used to build a clear foundation in practical finance workflows.
Illiquidity Discount - Beginner Guide
Illiquidity Discount is a key Valuation concept used to build a clear foundation in practical finance workflows.
IRR Rule - Beginner Guide
IRR Rule is a key Corporate Finance concept used to build a clear foundation in practical finance workflows.
Revenue Multiple - Beginner Guide
Revenue Multiple is a key Valuation concept used to build a clear foundation in practical finance workflows.
NPV - Beginner Guide
NPV is a key Valuation concept used to build a clear foundation in practical finance workflows.
EV EBITDA - Beginner Guide
EV EBITDA is a key Valuation concept used to build a clear foundation in practical finance workflows.
Gross Margin - Beginner Guide
Gross Margin is a key Valuation concept used to build a clear foundation in practical finance workflows.
Income Approach - Beginner Guide
Income Approach is a key Valuation concept used to build a clear foundation in practical finance workflows.
Control Premium - Beginner Guide
Control Premium is a key Valuation concept used to build a clear foundation in practical finance workflows.
Cost of Equity - Beginner Guide
Cost of Equity is a key Valuation concept used to build a clear foundation in practical finance workflows.
DCF Sanity Check - Beginner Guide
DCF Sanity Check is a key Valuation concept used to build a clear foundation in practical finance workflows.
Intrinsic Value - Beginner Guide
Intrinsic Value is a key Valuation concept used to build a clear foundation in practical finance workflows.
Asset Approach - Practical Example
Asset Approach is a key Valuation concept used to connect theory to real numbers in practical finance workflows.
Free Cash Flow - Practical Example
Free Cash Flow is a key Valuation concept used to connect theory to real numbers in practical finance workflows.
Related tools & models
Topic deep dives
A comprehensive guide on constructing free cash flow projections, exit multiples, and sensitivity tables.
Understand the multiple IRR problem, reinvestment rate assumptions, and why NPV remains the gold standard.
Deconstructing cost of equity, after-tax cost of debt, and the capital asset pricing model (CAPM).
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