Understanding Discounted Cash Flows (“DCF”)
This issue has been prepared by Intangible Business, based on experience gained from preparing, reviewing and challenging DCF analyses over the last 30 years.
- Alternatives and cross checks
- Overall DCF framework
- Forecast cash flows
- Discount rate
- Clear inputs and assumptions
- Recognising alternative inputs and assumptions
- Pros and cons of DCF analyses
- Simplicity -v- complexity
