The chapters leading into this one have been focused on telling a story about a company, one that fits the company’s circumstances and the business arena in which it operates, and the challenge you face is in how to reflect that story in value. While there are many ways you can do this, the most versatile framework, in terms of being capable of incorporating almost any story, is one that uses the structure of a valuation model. Thus, if you think of cash flows as your endgame, you can start by first estimating revenues as the product of the total market that you see the company aiming at and
...more
