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Valuation
book

Valuation

by Rajesh Kumar
November 2015
Intermediate to advanced
514 pages
17h 1m
English
Academic Press
Content preview from Valuation
5

Principles of cash flow estimation

Abstract

Cash flow estimation is a necessary step for assessing investment decisions of any kind. In this DCF model, the major step of valuation is the estimation of future cash flows. The most important variable in estimating cash flows are the firm’s future sales growth and profit margins. The estimation of growth rates is an important determinant of cash flow estimation. Adjustments to financial statements are made for cash flow estimation. Adjustments have to be made for certain misclassification in the form of capital expenses and adjustments to finance expenses. Research and development expenses are often treated as operating expenses instead of capital expenses. Operating leases are examples for adjustment ...

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Publisher Resources

ISBN: 9780128025437