
92 The Financial Times Guide to Corporate Valuation
This can also be expressed as follows:
The total discounted cash flow comprises the
present value of future cash flows derived from
the company’s total assets. As the company valu-
ation is usually conducted in order to calculate
the value of the shareholders’ equity, i.e. the value
that belongs to the shareholders (which is what is bought and sold via the
company’s shares), the market value of the company’s debts is subtracted
from the present value that has been calculated.
In order to derive the value per share, the shareholders’ equity is divided
by the number of shares. ...