150The Financial Times Guide to Corporate Valuation
In our low-case scenario, we use these terminal value assumptions (in €m):
Checking the underlying assumptions
It is important not only to estimate carefully the assumptions but
also to check the reasonability of the assumptions made. For this we
use the framework presented earlier (page 94). This will help us to ana-
lyze what our DCF assumptions imply in terms of other critical financial
ratios. Assumptions made or implied for the base-case DCF valuation for
Mobitronics are shown in Table 8.10.
These assumptions can now be checked using the fact that under certain
assump ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.