Football Field Valuation Chart
A football field chart is a visual summary showing 'here's what the company is worth under different approaches' — each bar is a valuation range from a different methodology.
Definition
A football field chart is a horizontal bar chart that displays the implied valuation range of a company from multiple methodologies (comps, precedent transactions, DCF, LBO) side by side. It is the standard way investment bankers present valuation conclusions in pitch books.
Football Field Chart
Valuation ranges across multiple methodologies
Key Takeaway
The overlap zone across methodologies ($45-$52) represents the most defensible valuation range. The current price of $47 sits within this zone, suggesting the stock is fairly valued with upside to precedent transaction levels.
Why Do Ranges Differ?
Each methodology tells a different part of the valuation story
Components of the Chart
Each horizontal bar represents one valuation methodology: 52-week high/low, trading comps, precedent transactions, DCF, and LBO analysis. The bar spans the low-to-high implied value range, with the median or midpoint often marked. The x-axis shows either implied share price or implied enterprise value. The overlap zone across methodologies is typically where the final valuation or offer price lands.
How Bankers Use It
The football field is the centerpiece of the valuation section in pitch books. Sell-side bankers use it to justify an asking price; buy-side bankers use it to support an offer. By presenting multiple approaches, it demonstrates rigor and allows the client to see where different methodologies converge. The region where most bars overlap is the 'consensus' valuation range.
Building an Effective Football Field
Typically include 4–6 methodologies. Order them logically (e.g., market-based approaches first, then intrinsic value). Use consistent units (share price or EV, not both). Highlight the recommended range with shading. Reference the current share price and any existing offer with vertical lines for context.
Worked Example — With Real Numbers
For a target company: 52-week range implies $28–$42/share, comps imply $35–$45, precedent transactions imply $40–$52, DCF implies $38–$50, and LBO implies $36–$44. The overlap zone is roughly $38–$44, suggesting the fair offer price falls in that range. The current share price of $32 is below all methodologies, supporting the case that the stock is undervalued.
Key Takeaways
The football field is the standard format for presenting valuation conclusions in banking
It visually shows where different methodologies converge or diverge
The overlap zone across methodologies is the key reference for negotiations
Always include the current share price and any existing offer as reference points
Common Mistakes in Interviews
Mixing enterprise value and equity value on the same chart without converting
Including too few methodologies — a single bar is not a football field
Not explaining why certain methodologies yield outlier ranges
How Interviewers Test This
If asked to 'walk me through a valuation,' structure your answer as a football field: 'I'd use three approaches — comps, precedents, and DCF — and triangulate the ranges.' This shows you think like a banker. Test your knowledge with the IB Quiz.
Related Concepts
Directly referenced in this topic
Comparable Companies Analysis (Comps)
Comparable companies analysis (comps) is a relative valuation method that values...
Precedent Transactions Analysis
Precedent transactions analysis is a relative valuation method that values a com...
Discounted Cash Flow (DCF)
A Discounted Cash Flow (DCF) analysis is an intrinsic valuation method that dete...
Leveraged Buyout (LBO)
A Leveraged Buyout (LBO) is the acquisition of a company using a significant amo...
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