IDEAS home Printed from https://ideas.repec.org/a/vrs/founma/v3y2011i1p81-96n6.html
   My bibliography  Save this article

How to Perform Discounted Cash Flow Valuation?

Author

Listed:
  • Janiszewski Sławomir

    (Faculty of Management, Warsaw University of Technology, Warsaw, Poland)

Abstract

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.

Suggested Citation

  • Janiszewski Sławomir, 2011. "How to Perform Discounted Cash Flow Valuation?," Foundations of Management, Sciendo, vol. 3(1), pages 81-96, January.
    • Handle: RePEc:vrs:founma:v:3:y:2011:i:1:p:81-96:n:6
    DOI: 10.2478/v10238-012-0037-4
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/v10238-012-0037-4
    Download Restriction: no
    File URL: https://libkey.io/10.2478/v10238-012-0037-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fernandez, Pablo, 2002. "Valuation Methods and Shareholder Value Creation," Elsevier Monographs, Elsevier, edition 1, number 9780122538414.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    2. Pablo Fernandez, 2011. "How to Value a Seasonal Company’s Discounting Cash Flows," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 27-52.
    3. Mohsen Afsharian & Anna Kryvko & Peter Reichling, 2011. "Efficiency and Its Impact on the Performance of European Commercial Banks," FEMM Working Papers 110018, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    4. Samer Ajour El Zein & Carolina Consolacion-Segura & Ruben Huertas-Garcia, 2019. "The Role of Sustainability in Brand Equity Value in the Financial Sector," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    5. Borell, Mariela & Heger, Diana, 2013. "Sources of value creation through private equity-backed mergers and acquisitions: The case of buy-and-build strategies," ZEW Discussion Papers 13-094, ZEW - Leibniz Centre for European Economic Research.
    6. Ignacio Vélez-Pareja & Rauf Ibragimov & Joseph Tham, 2008. "Constant Leverage And Constant Cost Of Capital: A Common Knowledge Half-Truth," Estudios Gerenciales, Universidad Icesi, June.
    7. G. Lumpkin & Todd Moss & David Gras & Shoko Kato & Alejandro Amezcua, 2013. "Entrepreneurial processes in social contexts: how are they different, if at all?," Small Business Economics, Springer, vol. 40(3), pages 761-783, April.
    8. Magni, Carlo Alberto, 2005. "Economic profit, NPV, and CAPM: Biases and violations of Modigliani and Miller's Proposition I," MPRA Paper 7359, University Library of Munich, Germany, revised 27 Feb 2008.
    9. Magni, Carlo Alberto, 2010. "Residual income and value creation: An investigation into the lost-capital paradigm," European Journal of Operational Research, Elsevier, vol. 201(2), pages 505-519, March.
    10. Grzegorz Urbanek, 2011. "Brand and shareholder value during financial crises 2008-2009 (Marka a wartosc dla akcjonariuszy w okresie kryzysu finansowego 2008-2009 )," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 9(31), pages 155-169.
    11. Justyna Franc-Dąbrowska & Magdalena Mądra-Sawicka & Anna Milewska, 2021. "Energy Sector Risk and Cost of Capital Assessment—Companies and Investors Perspective," Energies, MDPI, vol. 14(6), pages 1-20, March.
    12. Irina Matyash, 2018. "Investment Attractiveness and Sustainable Growth of Telecommunication Companies: Value-Oriented Approach," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1411-1423.
    13. Pablo Fernández & Andrada Bilan, 2013. "110 Common Errors in Company Valuations," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 33-78.
    14. Seth Armitage, 2008. "Incorporating Financing‐Related Determinants Of Value In The Discounted Cash Flow Model," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 274-298, April.
    15. Serge Agbodjo & Isabelle Martinez, 2012. "La création de valeur actionnariale est-elle pertinente pour la prise de décision d'investissement ? Une étude empirique du SBF250 par secteurs d'activité," Post-Print hal-00935809, HAL.
    16. Wiktor Patena, 2011. "Company Valuation. How to Deal with a Range of Values?," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 7(3), pages 75-84, November.
    17. Ansay, Thomas, 2009. "Firm valuation: tax shields & discount rates," MPRA Paper 23027, University Library of Munich, Germany, revised 20 May 2010.
    18. Antonio Tencati & Laszlo Zsolnai, 2009. "The Collaborative Enterprise," Journal of Business Ethics, Springer, vol. 85(3), pages 367-376, March.
    19. Welc Jacek, 2017. "EBITDA vs. Cash Flows in Bankruptcy Prediction on the Polish Capital Market," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2017(2), pages 91-103.
    20. Fernandez, Pablo, 2006. "The equity premium in finance and valuation textbooks," IESE Research Papers D/657, IESE Business School.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:founma:v:3:y:2011:i:1:p:81-96:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.