Driscoll's berries
Session 03Exercise C

Session 03 · Valuation

Premium or Discount?

Score five strategic factors. See how judgement moves the real-world price.

Starting Point — DCF Base Value

From Exercise B (default assumptions)

$305.1m

Implied EV/EBITDA

10.0×

Override base EV:
$305m

Score the Five Value Drivers

Revenue Growth
0%
In line with market
Margin Quality
0%
Sector typical
Capital Intensity
0%
Sector typical capital use
Management Credibility
0%
Average execution record
Strategic Optionality
0%
Some options, unclear timing

Adjusted Valuation

DCF Base Value$305.1m
Revenue Growth+$0.0m
Margin Quality+$0.0m
Capital Intensity+$0.0m
Management Credibility+$0.0m
Strategic Optionality+$0.0m
Adjusted Value
$305.1m(+0%)

DCF EV/EBITDA

10.0×

Adjusted EV/EBITDA

10.0×

Broadly DCF-aligned — qualitative factors are balanced.

Factor Impact

Revenue Growth
0%
Margin Quality
0%
Capital Intensity
0%
Management Credibility
0%
Strategic Optionality
0%

Key Insight

The DCF is the floor — a mechanical output of growth and discount rate assumptions. But real deals are priced by humans who factor in the quality of the management team, how defensible the margins are, and what the business could become. A business that scores well across all five dimensions routinely trades at a 20–40% premium to its DCF value. The inverse is equally true. Management credibility and strategic optionality alone often explain the difference between an 8× and a 14× outcome.