Question
Other than the murkiness of interpreting equity valuation modeling results, the material focused on the key drivers of two models (Free Cash Flow FCF and
Other than the murkiness of interpreting equity valuation modeling results, the material focused on the key drivers of two models (Free Cash Flow "FCF" and Market Multiples "MM"). Why can't an analyst plug data into the FCF Equity Valuation Model and decide that the resulting value in the "answer" cell is the true, accurate, 'intrinsic' value of the business? Cite examples.
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Step: 1
An analyst cannot simply plug data into the Free Cash Flow FCF Equity Valuation Model and consider the resulting value in the answer cell as the true accurate intrinsic value of the business due to se...
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
