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Financial Times Guide to Corporate Valuation, The, 2nd Edition
book

Financial Times Guide to Corporate Valuation, The, 2nd Edition

by David Frykman, Jakob Tolleryd
September 2012
Intermediate to advanced content levelIntermediate to advanced
216 pages
5h 59m
English
FT Publishing International
Content preview from Financial Times Guide to Corporate Valuation, The, 2nd Edition
28 The Financial Times Guide to Corporate Valuation
The most important fundamental valuation
models
On the following pages, we will describe a number of different models.
Some can be used in many situations and others only in specific ones.
Valuation models based on cash flow
Discounted cash flow (DCF) model
In the discounted cash flow (DCF) model, you calculate the enterprise value
by estimating all future free cash flow streams and discount them back to
today using the appropriate cost of capital. Usually the weighted average
cost of capital (WACC) is used, which weighs the cost of equity with the
cost of debt. The DCF model is divided into
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Publisher Resources

ISBN: 9780273729112