Posted: 22 Jun 2011 at 01:29 | IP Logged
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Common errors in the valuation
process (DCF)The objective of
this paper is to present the common errors in the valuation process to
estimate the intrinsic value of a company/asset. The discounting cash
flow (DCF) approach is considered to be the most accurate
(theoretically), flexible
and widely used method. It is for that reason that most analysts prefer
to use it for valuing a company/asset. In this paper, we will give
attention to some conceptual errors when applying the DCF approach.
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