Abstract
There are different ways to calculate a company's value. The first method is to use the balance sheet of the company to estimate the value of a company using the DCF approach. Another method is concerning the competition analysis. By looking at similar companies in the same activity sector ("peer group") we can use their ratios to estimate the value of a company.
So, to be accurate in our valuation, we will use two methods of valuation:
-The Discounted Cash Flow Analysis
-The Financial Ratios Analysis (using multiples)
The second method will be used to confirm our first impression using the DCF Analysis. The Free Cash Flow: "Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Free cash flow is important because it allows a company to pursue opportunities that enhance shareholder value. Without cash, it's tough to develop new products, make acquisitions, pay dividends and reduce debt."
