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4th Step: Discounting free cash flows and terminal value

Discounting free cash flows and terminal value Following are the steps of DCF Valuations; Forecast Cash Flows Calculate Discount Rate Calculate Terminal Value Calculate PV of Free Cash Flow and Terminal Value Derive the Equity Value and Share Price In this article, we are going to discuss the 4th and 5th step of DCF valuation […]

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3rd Step: Terminal Value Calculation:

Short term finance courses in Delhi What is Terminal Value and How to calculate? When you preform DCF valuation, you forecast cash flows only for an explicit forecast period but DCF valuation is based on the principle that the company is a going concern and it will operate perpetually and generate cash flows even after […]

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Calculate Discount Rate

Calculate Discount Rate The rate at which future cash flows and terminal value are discounted is known as Discount Rate. In other words, it is minimum required rate of return of investors. If it is FCFF model then the Discount rate us Cost of Capital (Also known WACC) and if it is FCFE model then the […]

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Forecast Free Cash Flows

In this article, we are going to discuss the first step of Discounted Cash Flow (DCF) Analysis: Forecast Free Cash Flows: If you have read the previous article on various models in DCF then you will know that there are many models in DCF valuation like: FCF, DDM, EVA, APV or Residual Income, but most […]

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DCF Valuation Methods and FCFF vs FCFE

DCF Valuation Models: FCFF V/S FCFE Discounted Cash Flow Valuation: DCF is a fundamental technique of valuation which is based on the principle that the value of an asset will depend on the expected cash flows which the asset will generate in future. Similarly the valuation of company will depend on all cash flows which […]

1,692 total views, 5 views today

DCF Valuation Methods and FCFF vs FCFE

DCF Valuation Models: FCFF V/S FCFE Discounted Cash Flow Valuation: DCF is a fundamental technique of valuation which is based on the principle that the value of an asset will depend on the expected cash flows which the asset will generate in future. Similarly the valuation of company will depend on all cash flows which […]

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What is Enterprise Value

What is Enterprise Value and How to calculate it? Enterprise Value represents the true value of the company. It is total value of debt & equity. It is true cost of acquiring the company which will include both debt value & equity. To understand Enterprise Value, let’s consider buying a house. Suppose you want to […]

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Valuation Method

Valuation Methods

Valuation Methods What are company Valuation techniques? Describe main 5 techniques in brief. When you work in a research company or Investment bank, as an analyst you will be working on these valuation techniques every day.  Generally models will be already available for valuation. Analyst will only be updating data in those models and valuation […]

What is Valuation

What is Valuation

What is Valuation What is Valuation? Definition: It is the process to determine the Current worth of any asset, product or company. In our case we are going to understand the valuations of companies. The valuation of companies can be done following two different fundamental concepts: Liquidation value A going concern value Most of the […]

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Valuation Topics

Learn Basic of valuations:  Introduction of Valuation 1 What is Valuation 2 Valuation Methods 3 What is Enterprise Value 4 How to calculate Enterprise Value 5 DCF Overview 6 DCF Valuation Methods and FCFF vs FCFE 7 1st Step of DCF Valuation: Forecast Free Cash Flows : 8 2nd Discount rate Calculation: WACC Calculation 9 3rd […]

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