What a due diligence has to do with a valuation

About the enterprise to equity value bridge

Photo by Modestas Urbonas on Unsplash

How do the results of a due diligence help when it comes to valuing a company’s equity? And why does a due diligence only cover free cash flow and not the net cash flow / total cash flow?

In the following article, I am going to illustrate this.

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Jan Mozer

Jan Mozer

Finance professional. Creator of passion-for-finance.com sharing insights into financial analysis and valuation