Talk:Valuation using discounted cash flows

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Somebody should include the meaning of the terms of the formula!--~~~~

[edit] DCF formula

Yes - they are connected and related closely


yes, i agree. someone should explain the formula. is it even correct? i think there must be a typo somewhere... —The preceding unsigned comment was added by 140.247.187.181 (talk) 05:34, 19 March 2007 (UTC).



There should be a head artixle of company valuation

Some sections need hard review, as risk is not applicable for negative cash flow, it is not logically correct. Overall it is more common to call Present Value, than Current value. FCFF formula is incorrect, working capital changes should be included.--86.100.69.19 16:18, 17 October 2007 (UTC)

DCF is a large topic, and is used to value companies as well as other securities. Company valuation is significantly different than using DCF to value a bond. I agree this page should be linked from another page detailing various ways to value a company (capitalization of earnings, FME). Brianegge (talk) 09:28, 25 November 2007 (UTC)

[edit] Formula missing description for h and st

In this forumula

value of firm = 
\sum_{t=1}^n \frac{FCFF_t}{(1+WACC_{hg})^t} +
 \frac{\left[\frac{FCFF_{n+1}}{(WACC_{st}-g_n)}\right]}{(1+WACC_{hg})^n}

What does h represent? What does st represent? Pocopocopocopoco (talk) 04:03, 11 April 2008 (UTC)