What is Discounted Cash Flow? (DCF)
DCF shows the future cash inflows at a discounted rate.
In simple terms, DCF tells us about how much our future inflows are worth at the present.
Background: the money that we have today will lose i...
Advising Finance and Small Business
If you are a financial advisor to small businesses, please don't try to use investment theory when explaining how they should manage business cash flow. You will end up with zero result. But this is w...
DCF Simple but has Weaknesses!
The DCF method is the simplest in use, but is a complete failure in measuring uncertainty and risk, so simulation and the real options method hold the key for those situations......
DCF for Capital Projects in Condo Association
QUESTION:
Hi,
Condo association is planning roof replacement ten years from now. Today estimations are $1M. Should discounting be applied to this project? It means that future cost of the project...
Business Analysis, Company Analysis | Firm Analysis This presentation elaborates on the valuation and analysis of companies and include the following sections:
1. Company ...
Corporate Valuation, Book Value, Market Value, Intrinsic Value, Fundamental Value, M&A, VBM, Fundamental Investing Presentation that elaborates on corporate valuation, including the following sections:
1. Three types of value:
- Book...
Initial Understanding of DCF Introduction to Discounted Cash Flow, a valuation method, used to estimated the attractiveness of an investment opportun...
Basic Understanding of how to use Excel for calculating NPV The Net Present Value of an investment is the present value of the investment minus the amount of money it cost to buy i...