Abstract: This chapter focuses on discounted cash flow (DCF) method, which is the most satisfactory of all Income Approach methods. DCF requires estimating future after-tax economic income for a projected period; projecting a terminal amount, if appropriate; and discounting those amounts to a present value at a rate of return that accounts for the time value of money and the relative risks, irrespective of whether the expected benefits materialize or not. The selection of the most suitable DCF technique has to be made individually for each valuation and it depends on various factors, such as credit rating of the entity, capital structure, risk of tax shields, industry, country, and accounting rules.
Publication Year: 2012
Publication Date: 2012-01-02
Language: en
Type: other
Indexed In: ['crossref']
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Cited By Count: 1
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