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Message: <blockquote data-quote="Abstruser" data-source="post: 7925" data-attributes="member: 260">As [USER=544]@John Wu[/USER] mentioned, DCF is the most common method of valuation. Giving judgement based on book value is done (if at all) as part of the comparable companies analysis.I wouldn't worry too much about coming up with a set method of determining valuation based on a balance sheet. As [USER=23]@Salma[/USER] mentioned, its more about being familiar with the terms of the balance sheet itself. I would recommend familiarising yourself with a few simple balance sheet ratios - Debt/Equity, or Assets/Liabilities. That will help you to give quick judgement on the financial health (and therefore viability) of a company/acquisition target.I've only ever been asked to give an exact valuation figure in my A&O case study. I was given a balance sheet, but there was also correspondence from a fictitious financial advisor who gave me a formula of sorts to calculate an ideal purchase price/valuation of a potential acquisition target. If I remember correctly, it was 15 times the company's present post-tax income. I was told tax was typically 20%. So I just had to go over to the balance sheet, find the latest EBITDA, deduct 20% and multiply by 15. It was simple maths - I did it on my phone calculator - but I would have been lost if I didn't know what EBITDA was, or where to find it on a balance sheet. So again, I think it is more helpful if you have broad familiarity with the balance sheet, as it is unlikely you will be asked to give independent judgement on a company's valuation.Hope this helps. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile    :)" loading="lazy" data-shortname=":)" /></blockquote>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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