VALUATION: DISCOUNTED CASH FLOW EXPLAINED
If I agreed to pay you £100 in 10 years time and interest rates are 2% then that £100 in 10 years time is worth only £82.03 today because if you invested £82.03 in the bank and they paid you 2% interest you would have £100 after 10 years.
You do of course need to have earnings figures for each of the next, say, 10 years.
There is a bit more to it than that surely
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