Looking To Invest? 3 Ways The Value Of A Company Is Determined

Private equity firms invest in privately held companies with the goal of generating high returns on their investments. One of the key challenges in private equity investing is determining the value of a company. Private equity valuation is critical in determining the amount of investment required, and the returns that the investment is likely to generate. Here are three types of private equity valuation. Discounted cash flow analysis Discounted cash flow (DCF) analysis is a valuation technique that is based on the principle that the value of a company is equal to the present value of its future cash flows.