Dcf MBA

[pooja]

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I want to know the Discounted Cash Flows DCF Methods for MBA so will you please tell me?

[pawan]

The Discounted Cash Flows DCF business valuation is the fundamental method of valuation. The value of a business is based on the cash flows it expects to generate net of its financial indebtedness.

Discounted Cash Flow (DCF) will always tell you what a company is worth.

Discounted Cash Flows DCF Methods

This valuation method is based on the premise that the company is worth more by its future than by its past or present!

It is the only method that can be used for a company at the creative stage or with strong development prospects.

The DCF method is inseparable from the realization of a business plan that tells the story of the company, justifies the assumptions of changes in sales and expenses, investments and the need for working capital.

The buyer and the seller must therefore agree on a business plan.

The DCF method is, however, the only method that can be used for a company that has prospects for a sharp increase in its result, whether at the stage of its creation or at a stage of its development.

The peculiarity of this method is to value not the assets and debts of the company but the cash flows generated from the exploitation of these assets and debts.