DCF gets the "blue ribbon" for public company sanity checks, too...


A discounted cash flow analysis is “a blue-ribbon standard for valuing privately-held companies,” says a new article from TheBull.com.au, a journalist-owned Australian market share site; “it can also be used as an acid test for publicly traded stocks.” The DCF is also useful for small, private company valuations, of course, and a BV expert is particularly helpful for forecasting cash flows, calculating WACC, and arriving at credible value conclusions.

The article “DCF Valuation: The Stock Market Sanity Check” is written for investors and business owners—so it covers what business appraisers know is a sophisticated analysis from a fairly simplistic point of view. Still, it offers evidence of growing if not global support for BV appraisers’ most valuable tool.

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