This Case is aboutÂ FINANCIAL MANAGEMENT
PUBLICATION DATE: January 01, 2012 PRODUCT #: IMD650-PDF-ENGNOTE ON COMPANY VALUATION BY DISCOUNTED CASH FLOWS (DCF) CaseISM Solution
The value of a company depends not just on the time, but in addition on the cash flows it supplies to its investors, in addition to the danger of those cash flows. This note targets the key approaches used to value businesses while it’s in a merger and purchase establishing or not. It covers concepts including: 1) The discounted cash flow (DCF) approach; 2) Discount rates and cost of capital; 3) Valuation using multiples; 4) Value development through mergers and acquisitions (M&As).