How to Perform Discounted Cash Flow Valuation?

• Authors: Sławomir Janiszewski
• Languages of publication: EN

Abstracts

EN

Within the last few decades the quickly accelerating globalization processes contributed to rapid increase in the value of the global capital markets, and mergers and acquisitions transactions. This implicated the rising importance of methodologies that enable investors to efficiently value the companies. The aim of this elaboration is to present practical approach towards the discounted cash flow company valuation method, considered one of the most effective but simultaneously one of the most sophisticated among all. The article comprises purely theoretical as well as practical knowledge, based on the author's broad professional experiences.

Keywords

EN

valuation; discounted cash flow; free cash flows to firm; free cash flows to equity; residual value; discount rate; beta; market risk premium

• Publisher: Sciendo
• Journal: Foundations of Management
• Year: 2011
• Volume: 3
• Issue: 1
• Pages: 81-96

Dates

published

2011-01-01

online

2012-03-20

Contributors

author

Sławomir Janiszewski

• Faculty of Management, Warsaw University of Technology, Warsaw, Poland

References

• Bösecke K. - Value Creation in Mergers, Acquisitions and Alliances. Wiesbaden 2009.
• Copeland T., Koller T., Murrin J. - Valuation. Measuring and Managing the Value of Companies. John Wiley & Sons, New York 2000.
• Damodaran A. - Damodaran on Valuation: Security Analysis for Investment and Corporate Finance. Wiley Finance, 2006.
• Damodaran A. - Investment valuation. Tools and Techniques for Determining the Value of Any Asset. Sec. ed, John Wiley & Sons, Inc., New York 2002.
• Eccles R. G., Herz R. H., Keegan E. M., Phillips D. M. H. - The Value Reporting Revolution. Moving beyond the earnings gam. John Wiley & Sons, New York 2001.
• English J. R. - Applied Equity Analysis, Stock Valuation Techniques for Wall Street Professionals. McGraw-Hill, New York 2001.
• Fernandez P. - Valuation Methods and Shareholder Value Creation. Academic Press, San Diego 2002.
• Frykman D., Tolleryd J. - Corporate valuation. Prentice Hall, London 2003.
• Keuleneer L., Verhoog W. - Recent Trends in Valuation. John Wiley & Sons, The Atrium, Southern Gate, Chichester 2003.
• Pereiro L. E. - Valuation of Companies in Emerging Markets. John Wiley&Sons, New York 2002.
• Stowe J. D. - Equity asset valuation. John Wiley & Sons, Hoboken 2007.
• Szablewski A. - Wycena i zarządzanie wartością firmy, Wydawnictwo Poltext, Warszawa 2007.

Identifiers

DOI

10.2478/v10238-012-0037-4