Valuing companies with changing debt levels; Is the APV method better than the DCF?1

Business Valuation UpdateVol. 11 No. 6
June 2005
Mark L. Zyla, CPA/ABV, CFA, ASA


In this article, Mark presents the Adjusted Present Value (APV) method—an alternative to the DCF for companies with debt-to-equity ratios that are expected to change in the future.