“There are three obvious shortcomings of the DCF approach. One, it ignores key information -- namely the value of the assets in the business. Two, it takes very good information which is the near term cash flow projections, and very uncertain information, the terminal value which is supposed to capture the value of cash flow beyond four years, [...]
«Companies should know how much value they are creating from year to year to make sure they are executing on their strategic plan. Knowing revenue and EBITDA is not enough. Most companies have several businesses within one company and the value of those businesses can fluctuate depending on market conditions. Also, even if you [...]
What if you are a CEO, and you have no idea what the intrinsic value of your business is? What do you do then? 1 Company Valuation: My personal experience I founded Sarah Lawrence, a women’s clothes distribution company in 1982, and I was the CEO for 37 years. During that time we [...]
