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Deal Valuation

  • Vinod Kumar
  • Priti Sharma
Chapter

Abstract

This chapter covers the valuation aspects of M&A In this chapter, various valuation approaches or models used for valuing a target company or an acquirer firm are covered. These methods include transaction analysis, market-based valuation, relative valuation, asset-based valuation, discounted cash flows approach, etc. The chapter also has a valuation case study of acquisition of Myntra by Flipkart. The valuation of Myntra is covered in detail where forecasting of cash flows, calculation of related inputs and calculation of discounting rate and valuation of Myntra through excel-based financial modeling.

Keywords

Valuation Market-based valuation Relative valuation Comparative transaction valuation Discounted cash flow (DCF) valuation Flipkart-Myntra Net operating profit after tax (NOPAT) Free cash flow for the firm (FCFF) 

Copyright information

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Vinod Kumar
    • 1
  • Priti Sharma
    • 2
  1. 1.SGND Khalsa CollegeUniversity of DelhiNew DelhiIndia
  2. 2.Institute of Management Technology, Centre for Distance LearningGhaziabadIndia

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