Valuation
At the end of the day, every company is worth whatever the current value of all its future cash flows are discounted backward to today's terms.
It is a hint, not an answer. Based on a lot of assumptions, using conservative figures.
1st 10 years Cash flow. using OWNERS EARNINGS (FCF).
Cash flow beyond the 10th year (Terminal value): Assumes growth at 3% per year.
Add all the above discounted cashflows to get the present value..
Only the FCFs are hard data, all others are assumptions.
Time 14.13
http://www.youtube.com/watch?v=zA8udp8uRnw&feature=relmfu
At the end of the day, every company is worth whatever the current value of all its future cash flows are discounted backward to today's terms.
It is a hint, not an answer. Based on a lot of assumptions, using conservative figures.
1st 10 years Cash flow. using OWNERS EARNINGS (FCF).
Cash flow beyond the 10th year (Terminal value): Assumes growth at 3% per year.
Add all the above discounted cashflows to get the present value..
Only the FCFs are hard data, all others are assumptions.
Time 14.13
http://www.youtube.com/watch?v=zA8udp8uRnw&feature=relmfu
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