How to Value a Company | Best Valuation Methods

Рет қаралды 244,189

Күн бұрын

The three main valuation methods: multiples, DCF (Discounted Cash Flow) and the cost approach are explained in this video, followed by a pros and cons analysis of each method and a football field valuation walkthrough.
The multiples and DCF valuation methods are very common in investment banking, private equity, and equity research, while the cost valuation approach is most common in real estate finance.
In the video I explain the formulas for each, alongside a excel-based example of how each valuation method should be conducted.
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Chapters:
0:00 - Intro
1:22 - Multiples Valuation
4:44 - DCF Valuation
8:08 - Cost Approach
9:38 - Pros and Cons
12:45 - Football Field

Пікірлер: 166

@KenjiExplains 2 жыл бұрын

See my full DCF video here: kzfaq.info/get/bejne/nbKFf8ep17mRc4k.html

@MaryPatricia-wr3wj 9 ай бұрын

I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.

@user-vk8vu4li2x 9 ай бұрын

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@MaryPatricia-wr3wj 9 ай бұрын

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@user-vk8vu4li2x 9 ай бұрын

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@rodrigogonzalez2673 Жыл бұрын

Awesome video!!! I studied finance and you made everything super clear and simplified that gave a general overview of these valuation methods. I would love if you do a valuation case of a specific public company using the three methods and present your conclusions.

@zerkan5792 2 жыл бұрын

Great video man, I would really like to see more about multiple valuation and LBO modeling, I think you would be able to explain it very well and it would benefit a lot of people.

@manasranjan2777 Жыл бұрын

I always had a fear of valuation...but after this video i can master it too...thanks to you mate.☺️

@RonieIslam8 2 жыл бұрын

Looking forward to the video where you use DCF in excel for a specific company. Good job with explaining the basics as per usual!

@xAccident 2 жыл бұрын

Hi Kenji! I thought I'd just leave a comment to tell you how informative, structured and knowledgeable I think your videos are. I think you sum up the basics of many financial methods and concepts in a simple and intuitive manner. Thank you man, keep doing what you're doing. Also, I'm very impressed by your resume. Best, Gregory

@KenjiExplains 2 жыл бұрын

Hey Gregory, thanks for dropping the message very nice of you. Happy the channel is helpful that’s been my goal throughout! Appreciate you watching the videos ✌️

@apurvas7393 2 жыл бұрын

You provide such easy explanations. Thank you!

@camlex6310 2 жыл бұрын

Great video as always! You explain everything so clearly

@Antttthoony 2 жыл бұрын

Really great video, thanks! Your suggestion towards the end sound perfect. Would love to see more in-depth videos on each of the valuation methods. Excel-based videos would really be awesome.

@KenjiExplains 2 жыл бұрын

Noted!

@capu2112 8 ай бұрын

Hi Kenji, your videos are really really really well structured with a good tones that makes the learner engaged through the whole topic of the video. Please, can you do a video on risks valuation and on EBITDA as well ? Plus, I really enjoyed the way, you give us excel shortcuts that are actually useful. Keep going, you rock finance methods !! :)

@konradduszynski6774 2 жыл бұрын

Thans for the video! I'd love to see another one on DCF.

@KenjiExplains 2 жыл бұрын

Noted! Thanks!

@KenjiExplains 2 жыл бұрын

See my full DCF video here: kzfaq.info/get/bejne/nbKFf8ep17mRc4k.html

@konradduszynski6774 2 жыл бұрын

@@KenjiExplains Thanks a lot Kenji, have a great week!

@gurharkrishanbureau187 2 жыл бұрын

V nicely explained. Kindly do a detailed video on multiples

@vikasmishra134 Жыл бұрын

Thank You Kenji for creating such an Amazing learning video. Please make more videos in finances

@thayaswasdibutra3782 2 жыл бұрын

Love to see a full video about the Multiple Base approach

@sergioandresbuenaventuralo7982 2 жыл бұрын

Great videos Kenji, it will be great to see the full scenario videos

@jejakpetualang6665 2 ай бұрын

Great explanation, great smile. Thank you!

@tarabobozo1344 4 ай бұрын

Thank you ! It’s very helpful

@imotse 4 ай бұрын

Your videos are fantastic dude. I'm not a financial guys but you make it practical with your examples and i can easily follow you step by step

@georgemoros3839 Жыл бұрын

Great video. Thank you so much !!

@Vishal-raghuwanshi Жыл бұрын

Best video I watched on this topic

@turkimm2396 Жыл бұрын

Could you please do a separate video on the Multpes, Cost Approach, Football Field, and Terminal Value, and the M&A method? Thank you I appreciate all your videos they are very informative.

@aayushbajaj2260 2 жыл бұрын

awesome video dude. for some reason your explanations totally clicked. thanks so much!

@KenjiExplains 2 жыл бұрын

Thanks for the message means a lot 🙏

@paulvitella9655 2 жыл бұрын

Awesome video! Part 2 please!

@Soritaaa 2 жыл бұрын

Thanks for the video man, really clarified some doubts I had!

@KenjiExplains 2 жыл бұрын

Thank you!

@KimberlySaldanhakrichelle 2 жыл бұрын

Hi Kenji, I love your videos. Your explanation is so clear and concise. Would you please make a video on comparable approach and transaction approach ? It will help many of us. 🥰

@KenjiExplains 2 жыл бұрын

Noted thank you!

@dwoo0418 2 жыл бұрын

you will revolutionize the finance education industry, i can see it.

@juancarloscevallos3899 2 жыл бұрын

Very complete and understandable!

@KenjiExplains 2 жыл бұрын

Glad it was helpful!

@shovanmohapatra9790 2 жыл бұрын

would love to have a series!

@jdk9523 2 жыл бұрын

Thank you Kenji and your videos always have been really helpful and i will really appreciate if you touch down more on DCF and multiple valuations!

@KenjiExplains 2 жыл бұрын

Noted and thank you for the nice comment!

@miladaseckarova5479 5 ай бұрын

thx so much , very helpful

@khaledhk1129 2 жыл бұрын

great video!! Id be very interested in a video explaining how to approach valuations !!

@sirr_will Жыл бұрын

This was really helpful 👏🏾

@carenasemerel1953 Жыл бұрын

Great video… it’s very understandable

@pedrofreire4369 2 жыл бұрын

Great video, you have an amazing release video timing ahah because is a good sum up of some methods used in the book im currently reading - "Valuation" by Mckinsey, which I recommend to all.

@KenjiExplains 2 жыл бұрын

haha thanks for recommending!

@marcoantoniocamacho7338 2 жыл бұрын

I WOULD LOVE TO SEE THE WACC VIDEO. THANKS BRO

@mujibkhairulamri1231 2 жыл бұрын

I love your video mate! thanks for sharing, I will tune on your video more after this! Superb content! Love from Malaysia

@KenjiExplains 2 жыл бұрын

Thanks for watching!

@henribach7935 2 жыл бұрын

Nice video! Love the consistency!

@KenjiExplains 2 жыл бұрын

Really appreciate it!

@takshdhabalia1476 2 жыл бұрын

great vid man please consider making a video on quants and AI ML in stock market and in the prediction and patterners in general

@spontanico9761 3 ай бұрын

awesome video!!

@paulrocke8335 2 жыл бұрын

You really helped me secure a Transaction Advisory Internship! Thanks

@KenjiExplains 2 жыл бұрын

That's awesome to hear Paul, made my day! Hope you enjoy it man 👏

@genieiii Жыл бұрын

Hello this is a very helpful video. Would you be able to do an in depth video like the one you made for DCF for the P-E multiple version?

@janoshajdu4552 2 жыл бұрын

Hi Kenji, these videos were just so great, can't wait to see a full scale evaluation of TESLA. Thanks in advance!

@KenjiExplains 2 жыл бұрын

More to come!

@everinelo1749 2 жыл бұрын

Thanks for the video! I would love to see a video of valuation of a real company based on its real FS.

@sshreysheth4769 2 жыл бұрын

Hey thanks, I would love to see a video on building a DCF model with an example if possible... love your videos!

@KenjiExplains 2 жыл бұрын

Noted!

@fredichshain7441 2 жыл бұрын

Hi Kenji, thanks for your video. They are great, but they are great for the assumption of constant cashflow. How about Startup? Or pre-revenue startup? How do you justify the valuation of a pre-revenue startup?

@charmijhaveri8847 2 жыл бұрын

Very useful video please put elaborate video on pe multiple and enterprise value approach.

@moveyobodytoday 2 жыл бұрын

Awesome video Kenji!

@KenjiExplains 2 жыл бұрын

Thank you!

@deltaplanesrock237 2 жыл бұрын

Please make an individual video for each of these approaches. Great video!

@KenjiExplains 2 жыл бұрын

Thanks for the suggestion!

@andrea-hy8px 2 жыл бұрын

Agree!

@gurharkrishanbureau187 2 жыл бұрын

V nicely explained. Kindly do a detailed video on multiples

@ShishirShetty 2 жыл бұрын

would love a video on multiple valuation!!!! :)

@samar1218 5 ай бұрын

I love you! 🥰😍 your videos are so helpful 😘😘

@medinaamano2221 9 ай бұрын

Thank you

@casonalimudgal7986 20 күн бұрын

Awesome video

@puminprapusakpitak3996 2 жыл бұрын

Thank you for easy and clear explanations. Appreciate if upcoming video for more detailed valuations by DCF and multiple launched.

@KenjiExplains 2 жыл бұрын

Noted thank you!

@saivinayakakkaldevi2746 2 жыл бұрын

thanks alot pls make a video on multiples method

@ashishdevadiga157 2 жыл бұрын

Amazing video! Would really appreciate it if you could make videos on each method :)

@KenjiExplains 2 жыл бұрын

Noted! Thanks for the suggestion

@aspectoflife 4 ай бұрын

greatest always

@DomJC14 Жыл бұрын

Really good video

@hollowinyourface3617 2 жыл бұрын

Hi Kenji, can you walk us through how you prepare for the technical knowledge that are required for internship for students in europe, whether that's summer internship or industrial placement?

@jonlacson3823 Жыл бұрын

yes part 2 pls

@ramesherrabolu1590 Ай бұрын

Trying to understand how buyers determine the dollar value of a business they wish to purchase. It will be good to walk through this determination via an example

@SanthoshKumar-dp3mw 2 жыл бұрын

nice video. I'd like another video on DCF valuation on a specific firm

@KenjiExplains 2 жыл бұрын

Noted!

@shadyr.khairy6611 Жыл бұрын

thanks

@tushargarg9118 2 жыл бұрын

Please make a video on how to do forcast the financial statements

@moveyobodytoday 2 жыл бұрын

Could you do a video on financial calculations / excels a start-up should do / make? would be super helpful! :) The case study on Apple would be awesome too! Cheers again for the well explained video

@KenjiExplains 2 жыл бұрын

I’ll definitely keep it in mind!

@KrishnaShah-hp7su 2 жыл бұрын

Hey Kenji I really need a video on all the Valuation methods with details including LBO Buy out and all other things can u pls a whole detail video on all these things? It would be so helpful for me if u could just make detail video on Valuation of same Company with different methods and approch.

@manuelcabezassandonis6752 2 жыл бұрын

Hi Kenji I will appreciate if you could make a video on best business to start with low money or either how would you recommend to invest if you were just a beginner. Hope you can help. Thank you !!

@spotlesstv1574 Жыл бұрын

Great stuff 🤝🤝🤝🇯🇲

@akshayan6246 2 жыл бұрын

Please more on multiple valuation! Can you do an example using Shift Technologies?? Thanks for helpful videos!

@KenjiExplains 2 жыл бұрын

Noted thank you!

@sriram181 Жыл бұрын

Kenji it would be greatif hou uploaded a detailed valuation video on Multiples approach as well as cost approach

@chunyinlee2542 2 жыл бұрын

Please do a more detailed version video of Exit Multiple Method!!!!

@Theinvestorshow Жыл бұрын

You are a beast

@carelbolemen3297 2 жыл бұрын

god bless you thank you it helped

@KenjiExplains 2 жыл бұрын

Thanks for dropping the comment glad it helped!

@tahmidjahin179 2 жыл бұрын

Can you please explain why the median does not account for an outlier? P.S: Waiting for a more detailed multiple-based approach part 2 video, possibly with a real example!

@himanshugourd6978 Жыл бұрын

Hii Kenji good work done & really appreciated. It help in exploring more financial terms. Can i know how to get excel format of this..

@scottforesgaming 2 жыл бұрын

Can you please do a three case on the methods in excel to have a better understanding also

@user-zq5xf1tw3k 4 ай бұрын

Hey Kenji, can u pls come with a video on revenue model of a corporate.

@rere439 2 жыл бұрын

more on DCF valuation please...

@sambagnokane6756 2 жыл бұрын

Hello Kenji can you do a video of multiple based approach please?

@abhishekkashyap_ak 2 жыл бұрын

Good content. Please make individual video for each method in details.

@KenjiExplains 2 жыл бұрын

Noted thanks!

@kumailmoosavi2975 Жыл бұрын

Please please please make a video on the multiples method :)

@ibraheemali9541 Жыл бұрын

4:00 please do a seperate detailed video on muultiples valuation method

@CuteBoyLesh 6 ай бұрын

So amazing.. even in 2023

@ektap4532 2 жыл бұрын

thnks

@sivertsoltun 2 жыл бұрын

Great video! Do you think you could make a detailed video/tutorial about your typical analyst tasks in Excel during your Goldman Sachs summer internship? I have recently applied for a similar position and I'm keen on advancing my Excel knowledge and skills!

@KenjiExplains 2 жыл бұрын

Hey thanks for the suggestion will keep it in mind! I made an excel based video 2 weeks ago if you wanna check that out for now

@almasdossanov2933 2 жыл бұрын

A great video, great explanation, would love to see deep explanations on each method, thanks a lot 👍

@KenjiExplains 2 жыл бұрын

Noted!

@elijah9253 2 жыл бұрын

Hey kenji great video as always! Might I ask if you have any recommendations for a 19 year old about to begin his IB career? Aside from that I personally find intrinsic value the most enjoyable method of valuation!

@KenjiExplains 2 жыл бұрын

Hey! I don’t have much context on your education, work experience etc so hard to say…overall though focus on getting some insight programs at the big IB as they fast track you into internships. Also focus on trying to get to know people on the inside by networking as they can later recommend you for jobs

@marcoantoniocamacho7338 2 жыл бұрын

WOULD BE COOL IF YOU MAKE A VIDEO MAKING AN DCF ANALYSIS OR ANALYZING A COMPANY

@TheXcelleratorLLC 6 ай бұрын

Quick question 🤔 regarding business valuations. Is there a way to use a business valuation to get a loan??

@prabneetkandhari1087 11 ай бұрын

Sir you miss the related value method is also part of dcf?

@koneser12345 3 ай бұрын

Thank you for your videos. Is there a other method of calculating company value for startups which have no income yet? I've done one through Chat GPT with my prediction. I need to confirm those results with other sources

@carolinepage2293 2 жыл бұрын

Heyy so random but I watched your videos and they really helped! I just received an offer at Gs :) thank youu

@KenjiExplains 2 жыл бұрын

Hey Caroline that’s awesome to hear! Big congrats and hope you enjoy it! 👏👏👏 Thanks for letting me know 😁

@mariadocarmopereira2886 2 жыл бұрын

Parabens

@andrea-hy8px 2 жыл бұрын

Please do it!

@suvalaxmimaiti3043 19 күн бұрын

You are toooo cute 😭😭❤and talented..thank u for sharing these videos 😁😁..love from india❤

@yashkant7636 2 жыл бұрын

Hey kenji! I just came across this video , it would be really helpful if you could help us understand the fundamentals of finance and IB , so that our concepts are clear for the upcoming job interviews P.S- I’ve been binging your content more than Netflix 😂

@KenjiExplains 2 жыл бұрын

Haha i see. Can you give me some examples so i get an idea of what you’re thinking would be helpful?

@KenjiExplains 2 жыл бұрын

Also got a DCF video coming this Sunday stay tuned!

@yashkant7636 2 жыл бұрын

@@KenjiExplains thanks for the prompt reply kenji! I’ve developed this new interest in the world of finance , so really working on my fundamentals

@KenjiExplains 2 жыл бұрын

I see will keep it noted!

@jasonmcroberts7994 Жыл бұрын

Great video, well layed out. I'm selling a company in the next few years. What are your thoughts on placing a price or a percentage on the sale price of my company for revenue that hasn't been realised as yet , but it will be when the "new buyer" takes it over? It will be a very specific buyer that purchases this company - it will be an existing company with existing resources. More like an acquisition in many ways. A larger style company also., definitely not a new entrant.