Valuation Overview

What it means

The overall practice of estimating what a business is worth using DCF + Comps + Precedent triangulation.

Why it matters

Every strategic decision — raise, sell, buy, invest — starts with a defensible value.

How to calculate — with Cawan's Shoes

Triangulate three methods, then pick a defensible range: • DCF (intrinsic): $80M FCF, 6% growth 5 yrs, 3% terminal, 9% WACC → $1.42B EV. • Comps: EBITDA $120M × peer 10.0x median (Nike 14x, Adidas 9x, Puma 7x) → $1.20B. • Precedent M&A: revenue $500M × 2.2x (Deckers/HOKA-type deals) → $1.10B. Football-field range for Cawan's Shoes: $1.10B – $1.42B, midpoint ~$1.26B. Board uses the midpoint for the 5-year strategic plan and refreshes quarterly.

What's at stake if you ignore this

One-method valuation is easily wrong. Always triangulate.