Module II· Football Field & SensitivitiesIntermediate
Question
How do you read the Football Field — what does method overlap mean?
Answer
Mechanics
The overlap zone is the robust valuation range — the corridor where several methods land consistently. If DCF, comps, and precedents all overlap at $900–1,000m, that is a strong signal for roughly $950m as the mid-point.
Divergence readings
Methodological differences must be explained:
- DCF higher than comps: the market is undervaluing the business (or the DCF is too optimistic).
- Precedents higher than comps: a control premium is normal.
- LBO below everything: a sponsor floor with return discipline.
Deep diveShow more details
Pitch tip
'Robust valuation $920–980m, indicated by 4-method overlap; LBO floor $820m provides downside support; precedent premium $1,150m reflects strategic-bid potential.'