Transcription of Discounted Cash Flow Valuation: The Inputs
{{id}} {{{paragraph}}}
Example: biology
Discounted Cash Flow Valuation: The Inputs
1 Discounted cash flow Valuation: Discounted cash flow Valuation: The InputsThe InputsAswath Damodaran2 The Key Inputs in DCF ValuationThe Key Inputs in DCF ValuationlDiscount Rate Cost of Equity, in valuing equity Cost of Capital, in valuing the firmlCash flows Cash flows to Equity Cash flows to FirmlGrowth (to get future cash flows ) Growth in Equity Earnings Growth in Firm Earnings (Operating Income)3I. Estimating Discount RatesI. Estimating Discount RatesDCF Valuation4 Estimating Inputs : Discount RatesEstimating Inputs : Discount RateslCritical ingredient in Discounted cashflow valuation. Errors in estimating the discount rate or mismatching cashflows and discount rates can lead to serious errors in valuation.
macro economic factors. Market Risk = Risk exposures of any asset to macro economic factors. Betas of assets relative to specified macro economic factors (from a regression) In an efficient market, differences in returns across long periods must be due to market risk differences. Looking for variables correlated with returns should then give
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: