Determine the purpose of the valuation
Gather financial statements and company data
Normalize earnings and cash flows
Analyze historical performance
Forecast future revenue, expenses, and cash flows
Select appropriate valuation methods
Discounted Cash Flow (DCF) analysis
Comparable company analysis
Precedent transaction analysis
Asset-based valuation
Calculate key valuation multiples
Estimate terminal value
Determine discount rate or required return
Assess debt and cash balances
Adjust for non-operating assets and liabilities
Consider market conditions and industry trends
Apply minority or control premiums if relevant
Apply liquidity discounts if relevant
Perform sensitivity analysis
Cross-check results across methods
Derive enterprise value
Convert enterprise value to equity value
Divide by shares outstanding to get per-share value
Document assumptions and final valuation range