DRIVERS OF VALUE AND PRICE

CF perpetuity formula is what is used to determine Drives value and Price.

 

Since a Company is expected to repeat ist Performance in the future, it may be though of as a perpetuity. Factors which increase the value of a perpetuity are:

 

- Free cash flows, or an increasing growth factor or attribute

- Synergies and strategic value (use caution !!!!)

- Deal structuring (to maximize Returns and cash value)