Football Field Chart: How to Build a Valuation Summary
Why It Matters
No single valuation method gives you the “right” answer. Each approach has different assumptions, data inputs, and biases. The football field chart forces you to triangulate — showing where different methods agree and where they diverge. It’s the standard way investment bankers present valuation conclusions to boards, management teams, and fairness opinion committees.
The name comes from the chart’s appearance: stacked horizontal bars that resemble a football field viewed from above.
What Goes on the Chart
| Methodology | What Drives the Range | Typical Range Width |
|---|---|---|
| DCF Analysis | WACC, terminal growth rate, revenue assumptions | 20–40% from low to high |
| Trading Comps | Multiple selection (25th–75th percentile), metric choice | 15–30% |
| Precedent Transactions | Deal premiums, timing, strategic vs. financial buyers | 20–40% |
| LBO Analysis | Entry multiple, leverage, exit assumptions | 15–25% |
| 52-Week Trading Range | Market price history | Varies by volatility |
| Analyst Price Targets | Consensus and range of sell-side estimates | Varies |
How to Build One — Step by Step
Step 1 — Run Each Valuation
Complete each analysis separately. For the DCF, run a sensitivity analysis on WACC and terminal growth rate to establish the range. For comps, use the 25th and 75th percentile multiples. For precedent transactions, use the range of observed deal multiples.
Step 2 — Convert to a Common Metric
Express every valuation as the same unit — typically price per share or enterprise value. This makes the bars directly comparable. If you used EV-based methods, bridge from EV to equity value per share using the equity value bridge.
Step 3 — Create the Chart
Build a horizontal bar chart in Excel or PowerPoint. Each bar represents one methodology, showing the low and high value. Add the current stock price as a vertical reference line. Color-code the bars for clarity — darker shading for the “core” range, lighter for the tails.
Step 4 — Identify the Overlap Zone
The range where multiple methodologies overlap is your best estimate of fair value. If all four methods produce ranges from $45–55, that’s a strong signal. If they’re scattered from $30–70, you need to understand why they disagree and which assumptions are more defensible.
Step 5 — Add Context
Annotate the chart with key assumptions for each range (e.g., “DCF at 9–11% WACC, 2–3% terminal growth”). Add the 52-week trading range and consensus analyst targets for market context. Flag whether the analysis is on a standalone or change-of-control basis (precedent transactions include control premiums).
Reading a Football Field Chart
| Signal | What It Means | Implication |
|---|---|---|
| Tight overlap zone | Methods agree on value | High confidence in valuation range |
| Wide dispersion | Methods disagree significantly | Dig into assumptions — something is off |
| Stock price below all ranges | Market undervaluing vs. fundamentals | Potential upside (or market sees a risk you don’t) |
| Precedent txns above comps | Control premium is significant | Acquirer would pay more than public market price |
| LBO floor below DCF | Financial buyer can’t match strategic value | Strategic premium exists |
Key Takeaways
- A football field chart summarizes valuation across multiple methods on a single, visual page.
- Include at least DCF, trading comps, and precedent transactions — add LBO and 52-week range for context.
- Convert all methodologies to a common metric (price per share or enterprise value).
- The overlap zone across methods is your best estimate of fair value.
- Always annotate key assumptions and distinguish between standalone and change-of-control values.
Frequently Asked Questions
Why is it called a football field chart?
The stacked horizontal bars with different-colored ranges resemble the yard lines and zones on an American football field when viewed from above. The name has stuck in investment banking for decades, even though the chart itself is just a standard horizontal bar chart.
How many valuation methods should I include?
At minimum three: DCF, trading comps, and precedent transactions. Adding an LBO analysis, 52-week trading range, and analyst consensus provides additional context. More than six methods starts to clutter the chart.
How do I determine the low and high ends of each bar?
For DCF: use a sensitivity table on WACC and terminal growth. For comps: use 25th and 75th percentile multiples. For precedent transactions: use the range of observed multiples. For LBO: vary entry multiple, leverage, and exit assumptions. Each range should reflect reasonable — not extreme — scenarios.
Should I include the current stock price?
Yes. Add a vertical dashed line at the current share price. This instantly shows whether the stock is trading above, below, or within the valuation ranges. For M&A contexts, also show the offer price to illustrate the premium being offered.
How do I build this in Excel?
Use a stacked bar chart with invisible spacer bars. The first series (transparent) sets the left edge of each range. The second series (colored) shows the range width. Format it horizontally, remove gridlines, add data labels, and overlay a vertical line for the stock price. Most banks have templates — ask your team for the standard format.