Valuation methods: Discounting cash flows vs. using multiples 2 Articles

by A.W. Berry

Discounted cash flow (DCF) is the present value of an estimated future flow of money into a business, financial instrument or project. Multiples refer to ratio multipliers where the results of financial ratios are multipli...read more

by Dorian Wales

Discounting cash flows (DCF) is the preferred way to valuating a firm's worth but is a lengthy process which requires skill and expertise. Using multiples for valuations is convenient and straightforward but it can also be...read more