BUSINESS VALUATION AI
Financial Analysis Fundamentals
EBITDA, Cash Flow, and Adjustments
Build the analytical foundation for accurate valuations with EBITDA normalization, cash flow projection, and discount rate calculation.
"The numbers don't lie, but they don't tell the whole truth either. Your job is to make them speak clearly and credibly."
Great valuations start with great financial analysis. Before you can value a business, you need to understand what it actually earns and what cash flows it can generate.
EBITDA normalization separates signal from noise—removing one-time events, adjusting owner compensation, and presenting the true earning power of the business. Free cash flow projection translates that earning power into the cash that drives DCF value.
In this topic, you'll learn to normalize financials credibly, project cash flows reasonably, and calculate discount rates that reflect real risk. These fundamentals underpin every valuation methodology.
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Related Topics
Normalizations should be defensible to a skeptical buyer
The discount rate reflects risk—private companies need size premiums
Terminal value often drives more than half of DCF value
Working capital is real—don't ignore it in valuations
Quality of earnings analysis is your credibility test
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