What is the Football Field Valuation?
The Football Field Valuation Chart is one of the most common slides in an investment banking pitch book.
In short, the football field is a floating bar chart in Excel that puts several valuation analyses side-by-side to provide clients with the full context of a company’s value using a variety of methodologies and assumptions.
How to Build a Football Field Valuation Matrix
In investment banking, the standard football field valuation matrix will estimate the company value based on:
- DCF Valuation
- LBO Analysis
- Comparable Company Analysis
- Precedent Transactions Analysis
- Trading 52-week high and low
- Liquidation Analysis (optional)
- Sum of the Parts Analysis (optional)
What is the Purpose of the Football Field Valuation Matrix?
The purpose of the football field valuation is to create a visual summary of all the valuation analyses that were performed on a company and to demonstrate a valuation range based on those valuation methodologies.
The goal of the football field valuation chart summary is to sanity-check various methodologies against one another.
For example, a comparable company analysis might show high valuations during strong equity markets, while an intrinsic DCF valuation might show a lower valuation. The football field places those alternative valuation approaches side by side when arriving at a valuation range. In addition to being a staple of the investment banking pitch book, it is also used in fairness opinions.
Football Field Valuation Matrix: Excel Template
Before watching the excerpt from Wall Street Prep’s full Financial Modeling Training Package, use the form below to follow along with our free football field valuation template.
How to Build the Football Field Valuation Chart
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