A football field chart is used to summarize a range of values for a business, based on different valuation methods. This guide includes a free Football Field Chart Template to download at the end of the page. The purpose of the chart is to show how much a buyer might be willing to pay for a business, whether acquiring all of it, part of it, or even a single share (depending on the audience).
Why is it called a valuation football field?
The chart is called this because the bars look like yard lines on an actual football field, and hence the name. Also, the graph is commonly used in investment banking, and bankers like sports analogies.
Why use a football field chart?
The reason they’re used is to visually show what the range of values for business are and see where, an average, a target valuation lies compared to several alternatives. It’s common to see these charts in an investment banking pitch book or equity research report, summarizing the various valuation methods that were used.