valuation

Showing 19-27 of 29 results

Share

Corporate Tax Reform and the Future of Valuation – Part II

In his first article on the effects of the new US corporate tax reform bill, Toptal Finance Expert Jacob Wright assessed one of the most important impacts of the reform: the changes to interest deductibility. In this follow-up article, he runs through some further thoughts related to the effects on capital expenditures, in addition to a more high-level assessment of what the optimal capital structure of the future will look like given these changes.

11 minute readContinue Reading
Jacob Wright

Jacob Wright

Biotech Valuation Idiosyncrasies and Best Practices

Biotech companies with little to no revenue can still be worth billions. Consider the most prominent 2017 biotech M&A deal when Gilead bought Kite Pharma for almost $12 billion. At the time of the deal, Kite had over $600 million in accumulated deficit, but it also had a pipeline of CAR-T cell therapies, which treat cancer. This article examines how to value such pipelines. It also focuses on the risk-adjusted NPV valuation methodology, portfolios of multiple drug candidates, and how value is impacted by the characteristics of the investor or acquirer.

22 minute readContinue Reading
Raphael Rottgen, CFA FRM

Raphael Rottgen, CFA FRM

Estimating WACC for Private Company Valuation: A Tutorial

The discount rate is a critical input in any discounted cash flow valuation analysis. How does an analyst estimate a reasonable discount rate for a private company that has no publicly traded debt or equity?

This article focuses on best practices for estimation of the WACC in the context of a private company valuation. The discussion begins with an overview of the WACC, background on the components of the WACC, methods to estimate the WACC components for private companies, and an example of how to apply this framework to estimate a privately-held building materials company.

16 minute readContinue Reading
David Turney

David Turney

Professional Sports Franchise Valuation

Professional sports franchises continue to see record sale prices. But what drives a team like the Dallas Cowboys, who haven’t won a Super Bowl in over 20 years, to top the list of the most valuable sports franchises in the United States?

In this article, Toptal Finance Expert David Turney provides an overview of professional sports economics, unique valuation considerations, and a team valuation example.

23 minute readContinue Reading
David Turney

David Turney

Corporate Tax Reform and the Future of Valuation

In December 2017, Congress’ tax reform bill, amongst many sweeping changes, reduced the marginal tax rate to 21% from 35% for corporations, and limited their use of interest expense as a tax shield.

This article explores the implications of these changes for traditional methods of valuation, including the discounted cash flow (DCF) method and the EBITDA multiple method for the corporate manager and finance professional.

11 minute readContinue Reading
Jacob Wright

Jacob Wright

The Statistical Edge: Enhance Your Metrics with the Actuarial Valuation Method

Traditionally confined to the realms of insurance and pensions, actuaries are now branching out into the wider business world.

The long-termist and statistical approach of actuarial science makes it an invaluable tool for recurring income businesses. This article looks at how, showing examples of usage within customer lifetime value and human resources.

13 minute readContinue Reading
Dani Freidus

Dani Freidus

Is $4.2 Billion Reasonable? How to Evaluate Instacart's Valuation

Grocery delivery startup Instacart has recently been valued at $4.2 billion. In this article, Finance Expert Patrick Gaffney works backwards and uses some basic assumptions to determine if the valuation is reasonable.

With companies opting to stay private for longer, analyzing private companies in this way can help us better understand industries typically shrouded in secrecy and provide clarity on the efficacy of certain business models.

17 minute readContinue Reading
Patrick Gaffney

Patrick Gaffney

Are Art Investments a Worthwhile Asset Class?

Did you know that, in 2016, $60 billion was invested in art, which was comparable to the exit proceeds from venture capital investing?

This article sheds light on the opaque world of art investments and whether it’s a realistic choice for inclusion in portfolios. The article covers types of art as well as how investments are valued and return performance relative to other assets.

10 minute readContinue Reading
Zachary Elfman

Zachary Elfman

A Deep Dive into Elon Musk’s Investments: The Makings of a Billionaire

Everyone is familiar with Elon Musk the Entrepreneur, but what about Musk the Investor? In this article, we will look at how Musk has funded his ventures and managed his personal angel investments over his career, clever tactics that he has applied, and lessons learned from his experiences.

20 minute readContinue Reading

Toptal Talent Network Experts

World-class articles, delivered weekly.

Subscription implies consent to our privacy policy

Join the Toptal® community.