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Valuation of shares – discounted cash flow basis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Valuation of shares – discounted cash flow basis

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by salman7.
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  • March 6, 2017 at 6:06 pm #376046
    salman7
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    • Topics: 77
    • Replies: 36
    • ☆☆

    Dear sir,

    In valuation of shares, we have “Cash-flow based valuation models”:
    (i) dividend valuation model and the dividend growth model
    (ii) discounted cash flow basis.

    Can you please highlight the importance of “discounted cash flow basis” model?
    I am confused about its name as we studied discounted cashflows in investment appraisal.
    I think we did not cover it in valuation of shares. So should I study anything about it in F9?

    Thanks,

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