Discounted Cash Flow
Accurate valuation for a business of any size:
The Discounted Cash Flow method lets you act with precision and authority when deciding if the business acquisition makes sound financial sense.
Used by appraisal professionals and seasoned investors, the Discounted Cash Flow calculation shows you the value
of the business in today's dollars, based on the expected cash flow stream, projected gain from future business sale, and a discount rate.
What you can do with ValuAdder:
- Use your cash flow projections directly as input to your closely held business valuation.
- Quickly edit cash flow projections, business sale gain, and discount rate to run what-if scenario calculations.
- Use the Weighted Average Cost of Capital procedure outlined in the ValuAdder Help System to quickly build up the discount rate, based on your blend of debt and equity acquisition capital.
- Pick the winner: handle the small business opportunity to buy as a capital investment project with the Net Present Value calculation.
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