Valuation Hub
Master DCF, IRR, WACC, multiples, and interview-ready valuation workflows with examples and calculators.
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Hub concepts directory
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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.
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.
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.
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.
Terminal Value
Terminal value represents the value of a business beyond the explicit forecast period in a DCF model, assuming continued operations.
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.
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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