The value of a business is structured not only on the time, but also on the cash flows it provides to its investors, along with the risk of those cash flows.
This note targets the principal approaches used to value companies, while it is in an acquisition and merger 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 creation through mergers and acquisitions (M&As).
NOTE ON COMPANY VALUATION BY DISCOUNTED CASH FLOWS (DCF) Case Study Solution
PUBLICATION DATE: January 01, 2012 PRODUCT #: IMD650-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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