Using a Discounted Cash Flow Methodology in Uncertain Times

Business Valuation UpdateVol. 27 No. 3
March 2021
Ronald L. Seigneur, MBA, CPA/ABV, ASA, CVA, CGMA
valuation methods & approaches
cash flow, discounted cash flow (DCF), projections, COVID-19

Summary

A fundamental look at the method taking center stage during the pandemic. This article outlines how the DCF method works and to highlight the nuances and trap doors that will be encountered and must be overcome to reliably apply the method to derive an indication of value that is well reasoned and supportable for the application intended.