أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
The free cash flow method, DCF, is based on the principle that the value of an asset is equal to the net present value of the future cash flows it generates. The value of an asset, or an entity, is thus calculated as the sum of the cash flows generated, discounted at the rate reflecting the risk level of the asset or entity in question. The valuation of an enterprise using the DCF method is based on an explicit construction of the assumptions underlying a valuation, namely long-term growth, investment and profitability forecasts as well as the future cash flow discount rate. reflecting the risk level of the business and its financial structure. Free cash flow is calculated before the payment of financial expenses, and is therefore returned to shareholders and lenders. The value of the enterprise is determined by discounting free cash flow at the weighted average cost of capital. The value of equity is then calculated by deducting net financial debt, using the indirect valuation approach.
