Question
When a discounted cash flow (DCF) model is used to estimate the intrinsic value of a company, many decisions are made. What are two weaknesses
When a discounted cash flow (DCF) model is used to estimate the intrinsic value of a company, many decisions are made. What are two weaknesses of the DCF model? Provide two examples of an attribute, asset, specialization, or value a company has that is not included in a discounted cash flow (DCF) model justifying a higher valuation?
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Two weaknesses of the DCF model are 1 Sensitivity to Assumptions The DCF model heavily relies on var...
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
