Description
2023-179: Nailing Down the Numerator in the Discounted Cash Flow Method
**Webinar 179: Live Broadcast Date: June 15, 2023, 1:00-3:00 pm EDT**
VPS STRAIGHTtalk Webinar Series: Nailing Down the Numerator in the Discounted Cash Flow Method
Speakers: Jim Alerding, CPA/ABV and Carli D. Lehr, CPA, CVA, CSEP
Countless books, presentations, and methods detail how to determine the cost of capital – the denominator – to be used in the discounted cash flow method of valuing a business. While valuation professionals can debate into perpetuity about basis points in the discount rate, we often overlook factors in the cash flow stream – the numerator – that can have a much more significant impact on the value of the company.
This presentation will discuss the importance of determining a reasonable and reliable projected cash flow stream when implementing the DCF method and ways to test the reasonableness of the forecasts or projections provided by management relied upon in your DCF calculation.
Learning Objectives:
In this webinar, the participants will learn:
- How to differentiate between a forecast and a projection
- The importance of using a reliable cash flow forecast or projection in applying the discounted cash flow method of valuation
- How to review or assist with the preparation of a forecast or projection to ensure the underlying assumptions are valid
- How to evaluate the specific risk to the overall valuation that should be considered given the status of the forecast or projection
- Lessons from court cases regarding the use of forecasts
- What our business valuation standards say about the use of prospective financial information in valuations
Handouts:
- VPS webinar PowerPoint slides
- Following the webinar, attendees will have access to a video recording of the program
With our simple flat pricing plan, your entire office (up to 20 people) can join us for this 100-minute presentation, earn two hours of CPE credit and receive an archive recording for $239. Contact jkern@valuationproducts.com if your firm will have more than 20 attendees.
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Program Level: Intermediate
Delivery Method: Group/Internet based
Prerequisites: Basic understanding of business valuation concepts
CPE Credits: Two 50-minute CPE hours / Field of Study: Specialized Knowledge
For more information on CPE credits, refund policies, and complaint resolution visit our CPE page at www.valuationproducts.com/cpe.html.
