Football Field Chart

Analysts rarely rely on a single valuation method. They typically use several, such as discounted cash flow analysis, comparable company multiples, precedent transactions and, for listed companies, the share price's recent trading range. Each method produces a range of values rather than a single number.

A football field chart displays each method as a horizontal bar, with the left end showing the low value and the right end the high value. The result resembles the yard lines on an American football field, which gives the chart its name.

For example, the chart might show a discounted cash flow range of 45 to 60 per share, a comparable companies range of 40 to 52, a precedent transactions range of 50 to 65 and a 52-week trading range of 38 to 48. A vertical line might mark a proposed offer price of 55, showing how it compares with each method.

Football field charts are widely used in investment banking presentations, fairness opinions and board discussions about acquisitions. They help decision-makers see where valuation methods agree and where they differ, and whether a proposed price falls within a reasonable range.