The International Valuation Standards Council (IVSC) just issued Technical Information Paper on the Discounted Cash Flow Method for Real Property and Business Valuations. This exposure draft appeals for public comment on debates such as:

• The DCF method should not be judged on the basis of whether or not the explicit cash flow assumptions are ultimately realized but rather on the degree of market support for the assumptions at the time they were made.”
• Do you agree that the DCF method, if properly applied, can be used as a method to arrive at market value?
• The discount rate should be determined based on the risk associated with the cash flows (para 10), whether the DCF model is being used to determine a market value or investment value.
• Do you agree, or do you consider that other matters should be taken into account in determining the appropriate discount rate?

Comments on this Exposure Draft are invited before 30 April 2011. All replies may be put on public record unless confidentiality is requested by the respondent. Comments may be sent as email attachments to CommentLetters@ivsc.org or by post to the International Valuation Professional Board, 41 Moorgate, London EC2R 6PP, United Kingdom.