Methods of determining the value of a target in a merger or acquisition include:

Question

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The discounted cash flow method and the price-earnings method are two commonly used methods for determining the value of a target in a merger or acquisition. The discounted cash flow method estimates the present value of future cash flows, while the price-earnings method compares the target's earnings to its market value. Together, these methods provide a comprehensive analysis of the target's value.

Methods of Determining the Value of a Target in a Merger