The two main methodologies used for the valuation of a company are: DCF (Discounted Cash Flows) EBITDA multiples DCF methodology: Compared with the EBITDA multiple methodology explained later in this post, the DCF will be more precise, and specific to one specific business. The DCF will look...

Bonds are a useful tool for companies to raise money or refinance some existing debt. A bond has three main components: Coupon: Fixed payments the corporation will pay at the agreed periods (quarterly, semi-annual, annual payments or even PIK) Face value: Also called the Principal, this is the...

First of all, we need to understand what a bond is. Companies generally have 2 main ways of getting financing, which are equity or debt: Equity financing can either be selling all or part of the shares of a subsidiary, or issuing new shares of the parent company. Debt financing is a lot more...