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. The model is simply a forecast of a company’s unlevered free cash flow
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.
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