Questions tagged [dcf]
In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted by using cost of capital to give their present values (PVs).
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Expected vs required return in valuation
This is a rather simple question, so this is maybe not the right place, but...
I have done quite a bit of reading on predicting asset returns, i.e. determining return expectations. I have now started ...
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Are Accounts Receivable and Accounts Payable already included in revenue?
I've been following this Udemy course on finance and valuation basics (Link). I am particularly confused when it comes to the cash flow statement part, specifically on how to get Operating Cash Flow (...
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Fixed Rate Bond Pricing using QuantLib Python
I have tried to price a fixed rate bond using Python QuantLib and I verified my answer using a DCF model.
Below are my codes for the pricing of the fixed rate bond using Python QuantLib:
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Which Risk Free rate to use?
I am trying to value a food and beverage company using DCF. I have forecasted the short term projections for 10 years and calculated a terminal value there after. But I am confused with which risk ...
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How to handle cash from financing in a DCF model? [closed]
I am building a valuation model for a public pre-revenue company (biotech). The company is going to have ~$600M in R&D and SG&A expenses over the next 4 years, which it is going to finance ...
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How to reconcile CAPM with Discounted Cash Flows valuation?
According to CAPM (in its most basic form) our asset allocation will only depend on the expected returns and the covariance matrix of returns. If we also consider the risk-free asset and assume that ...
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Complicated DCF valuation [closed]
Recently I tried to do a few valuation models. I searched a lot for information on the topic, but everything I found was pretty similar simplified models.
Please recommend where I can look at more ...
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why is a companies implied rate of return the correct discount rate for projected cash flows
Let's say we wish to value a company using the DCF method. To determine which discount rate to use for the cash flows we choose to use the CAPM methodology. The estimated beta of the company can tell ...
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Discounted Cash Flows in Excel
I'm taking an online class on stock valuation. In my class, the instructor calculated stock intrinsic value using XNPV function in Excel. While I understand this part, I don't know why it gives a ...
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Find out the effective monthly discount rate for a 10% annual discount rate
First time posting. Apologies in advance if this is not the right question for this forum. If it is, please let me know if I should reformat this in a particular way. If it isn't, would it be more ...
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Valuing Acquisition Target Case Study - DCF and IRR?
Wondering how best to answer a case study I need to do. Case study info as follows:
Given Selling company's P&L (3 years actual, 4 years forecast) - closing date on end of year 3 - and a PPT of ...
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Free DCF model database
Over the years, I have accumulated quite a few DCF models (some are my own and some are from others). I am wondering if there is any website where I can upload mine and download those of others so ...
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DCF Valuation Models
Does anyone know of any websites that have sample models or mind sharing their DCF models? Trying to get started modeling and can't seem to find many great resources. I know of Damodaran, but his ...
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Alternatives to irr function in Matlab to calculate internal rate of return
I am trying to calculate an IRR with several dimensions in Matlab 2019a. My formula below works in theory (ignoring the "multiple rates of return" warning for now), but the problem is that for bigger ...
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Small difference in IRR, big difference in NPV?
I calculated the following in Matlab 2019a, see code below. I was surprised about the big difference in present values (DiffPV, DiffPVpercentage) for only a small difference (DiffIRR, ...
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