The value of a company depends not just on the cash flows it provides to its investors, but additionally on the time, as well as the risk of those cash flows.
NOTE ON COMPANY VALUATION BY DISCOUNTED CASH FLOWS (DCF) Case Study Solution
This note concentrates on the primary approaches used to value businesses, whether it's in a merger and acquisition setting or not. It envelops concepts such as: 1) The discounted cash flow (DCF) approach; 2) Discount rates and cost of capital; 3) Valuation using multiples; 4) Value development through mergers and acquisitions (M&As).
PUBLICATION DATE: January 01, 2012 PRODUCT #: IMD650-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING