Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
4Activity
0 of .
Results for:
No results containing your search query
P. 1
Basics of Discounted Cash Flow

Basics of Discounted Cash Flow

Ratings: (0)|Views: 400 |Likes:
Published by APJava

More info:

Categories:Business/Law, Finance
Published by: APJava on Jun 30, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

02/09/2014

pdf

text

original

 
1
Basics of Discounted Cash FlowBasics of Discounted Cash FlowValuationValuation
Aswath Damodaran
 
2
Discounted Cashflow Valuation: Basis forDiscounted Cashflow Valuation: Basis forApproachApproach
where,n = Life of the assetCF
t
= Cashflow in period tr = Discount rate reflecting the riskiness of the estimated cashflowsValue =CFt(1+r)tt=1t=n
 
3
Equity Valuation versus Firm ValuationEquity Valuation versus Firm Valuation
l
Value just the equity stake in the business
l
Value the entire business, which includes, besides equity, the otherclaimholders in the firm

Activity (4)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
elihiltch liked this
Wenguang Leong liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->