The enterprise value in assessing the cash flow discounting method

Abstract

Estimates of the rights of the owners of the company, is the primary indicator
of the company’s profit potential over time. The income approach
is the basic principle is the principle of waiting. Method of discounting
future revenues, as the present value of the future income from the acquisition
of objects, successfully used for the assessment of real estate. The
benefits of real estate transactions in the future, future revenues and revers
yan time in the form of income during the period of ownership, ie the profit
from the sale of the property at the end of the period of ownership.
The enterprise value - the amount of income for several years and calculated
as the difference between the amount of the borrowed funds are
involved. Generates future income, expenses and cash flows. Future costs
and the results of the evaluation of the company is to be determined within
the reporting period and the amortization horizons. Computer horizons
measured by the number of steps of the calculation. Discounted cash flow
method, the assets of the enterprise value of their cash income is measured
by the ability to import.