Welcome, Guest
Email Password: Remember me

Valuation of companies
(1 viewing) (1) Guest
Finance
  • Page:
  • 1

TOPIC: Valuation of companies

Valuation of companies 5 years, 8 months ago #301

  • Kartik
  • OFFLINE
  • Senior
  • Posts: 56
  • Karma: 0
Can anybody tell me which is the best method of valuing a company...

Re: Valuation of companies 5 years, 8 months ago #302

I think NAV is the best and most commonly used but DCF is also equally common.

Re: Valuation of companies 5 years, 8 months ago #303

DCF is the most commonly used.
Discounted Cash Flows Method (DCF)takes into account the cash flows arising to the company and also the time value of money. That’s why, it is so popular. What actually happens in this is, the cash flows are calculated for a particular period of time (the time period is fixed taking into consideration various factors). These cash flows are discounted to the present at the cost of capital of the company. These discounted cash flows are then divided by the total number of outstanding shares to get the intrinsic worth per share.
The following user(s) said Thank You: mansin

Re: Valuation of companies 5 years, 8 months ago #304

If you search the net, both methods are explained and both are equally common. I think DCF is better as it takes time value of money into account.

Re: Valuation of companies 5 years, 8 months ago #305

thanks

Re: Valuation of companies 5 years, 8 months ago #306

Re: Valuation of companies 5 years, 8 months ago #307

  • mansin
  • OFFLINE
  • Expert
  • Posts: 97
  • Karma: 3
thanks a lot... this is really useful!
  • Page:
  • 1
Time to create page: 0.22 seconds