Cash flow valuation technique, Financial Management

Assignment Help:

Cash Flow Valuation Technique

The aim of this research is to empirically enquire into how to value a company using discounted cash flow valuation technique within its real life context in an uncertain environment of emerging markets, to what extent theoretical concepts are useful in valuing a company in the real world and to what extent a discounted cash flow valuation is subjective to assumptions used in arriving at the valuation. A case study approach is used to investigate the process of valuation of a company within its real life context. Robson (2002:178) defines case study as "a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence". According to Saunders et al (2007) case study strategy of research has considerable ability to generate answers to the research question „why??, „what?? and „How?? Indian Telecom sector is chosen for studying and in this sector a company is selected as a case study. After this the chosen company is valued based on the publically available information. A top down approach is used to estimate the future path of the company. First of all national and international macroeconomic factors are assessed. After that the factors related to the industry in which the company operates are analysed. Than an understanding is developed about the business of the company chosen for valuation. In this dissertation, a combination of qualitative and quantitative studies is undertaken. Qualitative analysis is used to understand the company?s strategy, industry and economic environment and to forecast future growth. Quantitative analysis is done to value the company, forecast the growth, and predict in the change in the valuation of the company with change in assumptions.


Related Discussions:- Cash flow valuation technique

Absolute performance standard, Absolute Performance Standard is a method of...

Absolute Performance Standard is a method of measuring an organization's development and how effective and efficient it is at operating its business. The absolute performance stand

How can we measure total return- rate of return, How can we measure Total r...

How can we measure Total return- Measuring the Rate of Return Total return can be defined as: Total returns = (Cash payment received + Price change over the period) / Purcha

International mortgage backed securities, International mortgage-back...

International mortgage-backed securities are the mortgage-backed securities that are issued in a country by a non-domestic entity. With limited size of the Indian

Payback period, Can some one tell me how to calculate payback period and wh...

Can some one tell me how to calculate payback period and which formula i used to calculated payback period? Explain!!!!

Explain learning outcomes of financial management, Explain learning outcome...

Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Determine the working capital cycle, Working capital cycle (operating/tradi...

Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a

Financial institution versus raising in financial markets, You are the chie...

You are the chief financial office (CFO) of Gaga Enterprises, edgy fashion design firm. Your firm needs $10 million to expand production. How do you think the process of raising th

Why do corporations declare stock splits and stock dividends, What is the e...

What is the effect of stock (not cash) dividends and stock splits on the market price of common stock?  Why do corporations declare stock splits and stock dividends? Stock divi

Caselet 2, SUGGESTION REGARDING CREDIT LIMIT. SHOULD IT BE APPROVED OR NOT,...

SUGGESTION REGARDING CREDIT LIMIT. SHOULD IT BE APPROVED OR NOT, WHAT SHOULD BE THE AMOUNT OF CREDIT LIMIT THAT ELECTRONICS GIVE TO BOOTH PLASTICS

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd