A football field chart is used to summarize a range of values for a business, based on different valuation methodsValuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance. 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 bankingInvestment BankingInvestment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. Investment banks act as intermediaries, 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 bookInvestment Pitch Deck TemplateThis free pitch deck template is based on hundreds of investor presentations I've seen. Download the free template to build your investor pitch deck. This PPT template can be used to create your own pitch for raising capital or present to investors to tell your story. or equity research report, summarizing the various valuation methodsValuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance that were used.
The range of valuation methods typically include:
Comparable Company AnalysisComparable Company AnalysisHow to perform Comparable Company Analysis. This guide shows you step-by-step how to build comparable company analysis ("Comps"), includes a free template and many examples. Comps is a relative valuation methodology that looks at ratios of similar public companies and uses them to derive the value of another business
Precedent TransactionsPrecedent Transaction AnalysisPrecedent transaction analysis is a method of company valuation where past M&A transactions are used to value a comparable business today. Commonly referred to as “precedents”, this method of valuation is used to value an entire business as part of a merger/acquisition commonly prepared by analysts
DCF AnalysisDCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. DCF stands for Discounted Cash Flow, so the model is simply a forecast of a company’s unlevered free cash flow discounted back to today’s value. This free DCF model training guide will teach you the basics, step by step with examples and images
Recent High and Low Share Prices
How do you make a valuation football field chart?
Football fields are easy to make in Excel using the stock chart option.
Here are the steps of how to make a football field chart in Excel:
Create a table in Excel with the range of values
Insert a stock chart type called Open-Low-High-Close
Set the Open and Low values as being the same
Set the High and Close values as being the same
Download the free template
Enter your name and email in the form below and download the free template now!
Valuation Football Field Chart – Excel Video Tutorial
Below is a video tutorial on how to use a stock chart in excel to create a valuation football field chart. This is one of the lessons of our Business Valuation Modeling Course.
More corporate finance resources
CFI is the official global provider of the Financial Modeling and Valuation Analyst (FMVA)™ certificationFMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy. , developed to transform anyone into a world-class financial analyst.
With that in mind, CFI’s vast library of resources to help you along your journey. Here are some useful we think you will find valuable:
How to get a job in investment bankingHow to get a job in investment bankingThis guide will outline how to get a job in investment banking using out top three tactics: networking and resume, interview prep, and technical skills. This guide is based on my firsthand experience of what is the most effective way of how to get a job in investment banking.
Investment banking interview questionsInvestment Banking Interview Questions & AnswersInvestment banking interview questions and answers. This real form was used by a bank to hire a new analyst or associate. IB interview insights & strategies. Questions are sorted into: bank and industry overview, employment history (resume), technical questions (finance, accounting, valuation), and behavioral (fit)
Excel formulas and functionsExcel Formulas Cheat SheetCFI's Excel formulas cheat sheet will give you all the most important formulas to perform financial analysis and modeling in Excel spreadsheets. If you want to become a master of Excel financial analysis and an expert on building financial models then you've come to the right place.
Lists of investment banksCareersSearch CFI's career resources library. We've compiled the most important career resources for any job in corporate finance. From interview prep to resumes and job descriptions, we've got you covered to land your dream job. Explore guides, templates, and a wide range of free resources and tools
Financial Analyst Certification
Become a certified Financial Modeling and Valuation Analyst (FMVA)®FMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy. by completing CFI’s online financial modeling classes and training program!
