Framework
A clean six-step valuation workflow.
1
Read the business
Understand revenue model, customers, pricing, cost base, and growth drivers.
2
Normalize numbers
Clean one-time items, unusual margins, accounting noise, and non-operating balances.
3
Forecast drivers
Build assumptions from volume, price, margin, capex, tax, and working capital logic.
4
Select method
Use DCF, trading comps, transaction comps, or a blended range based on context.
5
Run sensitivity
Test the variables that actually move value instead of testing everything blindly.
6
Conclude range
Explain the final range with logic, not just formulas.