Archive 2017-109: Best Practices: Business Valuation Methods – The Discounted Cash Flow Method
**Webinar 109: Live Broadcast Date: June 28, 2017
VPS StraightTalk Webinar Series: Business Valuation Methods – The Discounted Cash Flow Method with Jim Hitchner, CPA/ABV/CFF, ASA
Learn the Best Practices of the Business Valuation Methods in this VPS StraightTalk webinar series
The discounted cash flow method is a bedrock valuation technique. This session will cover the issues every analyst needs to consider to master this common but complex method.
Best Practices – Discounted Cash Flow will cover
- How to apply best practices in the cost of equity capital
- How to apply best practices in the weighted average cost of capital
- Proper use of the mid-year convention in the terminal year
- Normalizing capital expenditures and depreciation
- Accounting for excess depreciation and amortization
- Risk analysis and adjustments – discount rate, margins, or growth
- Normalization adjustments
- Comparison to historical earnings
- Minority vs. control cash flows
- Direct to equity vs. invested capital applications
- The use and misuse of exit multiples
- Working capital assumptions – debt-free vs. direct to equity
- Normalizing debt
- Supporting a long-term growth rate
- Perpetuity growth – yes or no?
- Sensitivity analyses and sanity checks
- Weighting and reconciling values
Using a detailed case study (including report language), the participant will learn:
- How to apply best practices in the DCF method
- How to defend the DCF method
- How to select the proper level of reliability of the DCF method
Information on CPE credits, refund policies, and complaint resolution can be found at www.valuationproducts.com/cpe.html.
This downloadable archived webinar package is an interactive video of the webinar with the original webinar handouts.
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