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DCF Valuation
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2:54 am
April 2, 2010


Jae Jun

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posts 1336
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My definition of the intrinsic value of a company is

"the sum of the future cash discounted to the present value" + "tangible value of the business"

So the total value is neither enterprise value, FCFE or FCFF.

The tangible value of the business is tangible shareholders equity which excludes debt. This would be equivalent to tangible book value.

Then the future cash flow is added to the equation.

2:57 am
April 1, 2010


itconsultant

Irving, Texas

Member

posts 34
1

Hi,

I had a question on the DCF valuation. The total value (B68) is that enterprise value ? I wonder why do you not subtract market value of debt to get the equity value ( and then divide by number of shares). is this the FCFE method or FCFF method?

thanks

itconsultant
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