Relevant bibliographies by topics / Discounted cash flow (DCF) model

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  2. Dissertations / Theses
  3. Books
  4. Book chapters
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Academic literature on the topic 'Discounted cash flow (DCF) model'

Author: Grafiati
Published: 4 June 2021
Last updated: 7 February 2022

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Journal articles on the topic "Discounted cash flow (DCF) model"

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Ivanovski, Zoran, Zoran Narasanov, and Nadica Ivanovska. "Performance Evaluation of Stocks’ Valuation Models at MSE." Economic and Regional Studies / Studia Ekonomiczne i Regionalne 11, no. 2 (June 1, 2018): 7–23. http://dx.doi.org/10.2478/ers-2018-0011.

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Abstract Subject and purpose of work: The main task of this paper is to examine the proximity of valuations generated by different valuation models to stock prices in order to investigate their reliability at Macedonian Stock Exchange (MSE) and to present alternative “scenario” methodology for discounted free cash flow to firm valuation. Materials and methods: By using publicly available data from MSE we are calculating stock prices with three stock valuation models: Discounted Free Cash Flow, Dividend Discount and Relative Valuation. Results: The evaluation of performance of three stock valuation models at the MSE identified that model of Price Multiplies (P/E and other profitability ratios) offer reliable stock values determination and lower level of price errors compared with the average stocks market prices. Conclusions: The Discounted Free Cash Flow (DCF) model provides values close to average market prices, while Dividend Discount (DDM) valuation model generally mispriced stocks at MSE. We suggest the use of DCF model combined with relative valuation models for accurate stocks’ values calculation at MSE.
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Karminsky, A., and E. Frolova. "Methods of Bank Valuation in the Age of Globalization." MGIMO Review of International Relations, no. 3(42) (June 28, 2015): 173–83. http://dx.doi.org/10.24833/2071-8160-2015-3-42-173-183.

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This paper reviews the theory ofvalue-based management at the commercial bank and the main valuation methods in the age of globalization. The paper identifies five main factors that significantly influence valuation models selection and building: funding, liquidity, risks, exogenous factors and the capital cushion. It is shown that valuation models can be classified depending on underlying cash flows. Particular attention is paid to models based on potentially available cash flows (Discounted cash flow-oriented approaches, DCF) and models based on residual income flows (Residual income-oriented approaches). In addition, we consider an alternative approach based on comparison with same sector banks (based on multiples). For bank valuation equity discounted сash flow method is recommended (Equity DCF). Equity DCF values equity value of a bank directly by discounting cash flows to equity at the cost of equity (Capital Asset Pricing Model, CAPM), rather than at the weighted average cost of capital (WACC). For the purposes of operational management residual income-oriented approaches are recommended for use, because they are better aligned with the process of internal planning and forecasting in banks. For strategic management residual income-oriented methods most useful when expected cash flows are negative throughout the forecast period. Discounted сash flow-oriented approaches are preferable when expected cash flows have positive values and needs for models using is motivated by supporting the investment decisions. Proposed classification can be developed in interests of bank management tasks in the midterm in the age of globalization.
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Nie, Z. Q. "Discounted cash flow (DCF) model detection based on goodwill impairment test." Journal of Discrete Mathematical Sciences and Cryptography 21, no. 4 (May 19, 2018): 959–68. http://dx.doi.org/10.1080/09720529.2018.1479174.

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Vimpari, Jussi, and Seppo Junnila. "VALUE INFLUENCING MECHANISM OF GREEN CERTIFICATES IN THE DISCOUNTED CASH FLOW VALUATION." International Journal of Strategic Property Management 18, no. 3 (September 18, 2014): 238–52. http://dx.doi.org/10.3846/1648715x.2014.940615.

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The market value of green properties is already acknowledged in scientific literature, but it has still remained unclear how green certificates are incorporated into property valuation. In this study, value influencing mechanism of green certificates in property investment is studied. A widely used discounted cash flow (DCF) model for property valuation was constructed and communicated with spreadsheet to industry professionals for valuing an office property in metropolitan Finland. The goal was to understand the value influencing mechanism and even deeper to identify the differences in DCF parameters between certified properties and non-certified properties. The results show that a green certificate increases on average the property value with 9.0% in the DCF valuation model. Improved yield and net rental income were the main reasons for the higher property value. Interestingly, this is the first known study to empirically open the value influencing mechanisms of green properties presented in earlier theoretical studies.
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Lahmann, Alexander, Sven Arnold, and Philipp Gmehling. "The Impact of Default on Tax Shield Valuation." Journal of Business Valuation and Economic Loss Analysis 12, no. 1 (May 24, 2017): 41–62. http://dx.doi.org/10.1515/jbvela-2016-0005.

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AbstractIn this paper we develop a model to value debt related tax savings and associated yield rates for debt in a setting where future cash flows are uncertain and follow a stochastic diffusion process. By explicitly modeling a default trigger we find that tax shield values in standard Discounted Cash Flow (DCF) valuation formulas are too high as they do not correctly incorporate the risk of default. Furthermore, we are able to endogenously derive risk-adjusted yield rates, while keeping the overall simple and tractable structure of the DCF approach.
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Khakzad, Hamid. "A framework for cost-benefit assessment of alternative sediment management strategies in Dez hydropower reservoir: A probabilistic approach." Water Practice and Technology 14, no. 4 (September 11, 2019): 783–801. http://dx.doi.org/10.2166/wpt.2019.063.

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Abstract A new theoretical approach to assessing the economic feasibility of sediment management strategies is proposed by incorporating probability distribution directly into the analysis. This would allow the life of Dez hydropower, for instance, to be prolonged definitely. The discount rate is also examined as a fundamental means of reflecting risk in discounted cash flow evaluations. Eight options for sediment management in Dez reservoir are assessed and future reservoir storage volumes estimated for the period 2018 to 2068. As a second step, discounted cash flow (DCF) with gamma discounting rate is used to evaluate present values for future cash flows for each option. The results indicate that these models, which offer an efficient approach, can be used to assess the cost-benefit feasibility of sediment management strategies. Guidelines are given for applying this approach to other projects.
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Kumar, Neeraj, S. R. Singh, and Rachna Kumari. "An Inventory Model with Time-Dependent Demand and Limited Storage Facility under Inflation." Advances in Operations Research 2012 (2012): 1–17. http://dx.doi.org/10.1155/2012/321471.

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The main objective of this paper is to develop a two-warehouse inventory model with partial backordering and Weibull distribution deterioration. We consider inflation and apply the discounted cash flow in problem analysis. The discounted cash flow (DCF) and optimization framework are presented to derive the optimal replenishment policy that minimizes the total present value cost per unit time. When only rented or own warehouse model is considered, the present value of the total relevant cost is higher than the case when two-warehouse is considered. The results have been validated with the help of a numerical example. Sensitivity analysis with respect to various parameters is also performed. From the sensitivity analysis, we show that the total cost of the system is influenced by the deterioration rate, the inflation rate, and the backordering ratio.
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Zhukov, P. E. "New Models for Analyzing Changes in Company Value Based on Stochastic Discount Rates." Finance: Theory and Practice 23, no. 3 (June 25, 2019): 35–48. http://dx.doi.org/10.26794/2587-5671-2019-23-3-35-48.

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We propose new models for analyzing changes in the value of the company using stochastic discount rates. It is shown that for the majority of the companies under study, local changes in the rate of the company value growth (percentage changes to the previous level) are not explained by the corresponding changes neither in the weighted average cost of capital (WACC), nor in the cash flows. This fact, as well as the research results by J. Cochrane, who proved that discount rates volatility is the main contributor to price volatility, became initial prerequisites for building models based on stochastic discount rates. The work presents three models built on stochastic discount rates, where cash flows are assumed to be growing with a certain trend, and the factors affecting the price of the company are described by stochastic discount factors. These models are alternative in relation to the commonly used traditional cash flow discounting (DCF) models where the free cash flow is discounted through the WACC, or the free flow to capital at the opportunity cost of equity. The first model is used to analyze the dependence of the company value on investments. It uses free cash flow subject to zero growth. The second model uses net cash flow from operating activities plus interest, minus the minimum investment subject to zero growth. The third model uses net cash flow from operating activities plus interest adjusted to taxes. This model requires to estimate the rates of the company downsizing subject to zero investment. The third model is applicable for companies with volatile investments, where it is difficult to reliably estimate free cash flow in case of zero growth. The models are designed for analysis of the factors influencing the value of the company for value-based management. Another application of the models is the evaluation of investment value of the company and the answer to the question of its possible overestimated or underestimated value. The third way to apply this model is the empirical evaluation of the weighted average cost of capital applicable to the company’s investment projects, alternative to WACC, assessed by standard methods.
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PARTHASARATHY, V. R. PERRY. "Managing uncertainty: A case for using real options with option pricing model (OPM) to evaluate capital investment." TAPPI Journal 12, no. 7 (August 1, 2013): 69–77. http://dx.doi.org/10.32964/tj12.7.69.

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The pulp and paper industry relies heavily on the traditional discounted cash flow-based net present value (DCF-NPV) for making capital investment decisions. The deficiency of the DCF-NPV model is that it is static; once a pattern of cash flow is established, management does not have the option to change the direction when new information is available. However, flexibility to alter the investment decision is a powerful strategic and capital investment tool. Abundant research has established strong precedence for applications of “real options” in operational and strategic settings to provide useful insights in the evaluation of irreversible investments under uncertainty. The binomial or Black-Scholes option pricing model (OPM) for strategic planning and capital investment has been used in many other industries but not in the pulp and paper industry. The pulp and paper industry, though very capital intensive, has provided poor to moderate return on investment or return on capital and has never used the OPM and the flexibility it offers for capital investment decisions. This paper makes a case for using OPM for capital investment decisions by using the example of a hypothetical North American mill considering investments to modernize its papermaking operation.
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Ataguba, Joseph Obaje. "Alternative Real Value Hybrid Model for the Valuation of Reversionary Leasehold Investment Properties." Real Estate Management and Valuation 28, no. 4 (December 1, 2020): 63–80. http://dx.doi.org/10.1515/remav-2020-0032.

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AbstractThis study is a design of an alternative real value hybrid model for the valuation of reversionary leasehold investment properties characterized by divergence in the revision period of sub-rent and head rent respectively. The development of this model commenced with a synthesis of inputs for the modified rational- and real value hybrid models, and the derivation of an equivalent cash flow multiplier for terminal investments. With exception of the generic real value model, term incomes across all other contemporary models including the alternative real value hybrid model were discounted using the equated yield. The discounted reversionary cash flows in the valuation template associated with the alternative real value hybrid model appears identical to that in the generic real value model, while exhibiting itself as a surrogate reversionary income multiplier for the modified rational, and the real value/short-cut DCF models respectively. The alternative real value hybrid model was validated as capable of producing valuations that are identical to those churned out from all the existing contemporary models for the valuation of this category of reversionary leasehold investment property. The study is a novel attempt towards redesigning the modified rational model of leasehold investment property valuation and according it a real value perspective.
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Dissertations / Theses on the topic "Discounted cash flow (DCF) model"

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Fetibegovic, Ahmed, and Adam Nilsson. "Real Estate Discounted Cash Flow Model Development and Design : The process of developing a new DCF model at a multinational real estate consultancy." Thesis, KTH, Bygg- och fastighetsekonomi, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-76078.

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Due to increasing skill and awareness of overall functions in programs such as Excel, an increasing number of analysts at real estate firms and consultancies have started developing "desktop" versions of valuation models used for professional appraisal of property value. Due to personal preferences, differences in schools and professional backgrounds, these so called desktop models vary in quality, robustness, accuracy, design and user friendliness. Professional software suites are not suitable either, as they are expensive, hard to learn, hard to adapt to specific needs of the business, outdated design and need of additional IT resources. At a multinational Real Estate consultancy such as Jones Lang LaSalle, requirements on tools used for professional opinions on questions as important as property value, are rigorous. Therefore, decision was made to develop a new DCF model which would be closely monitored by management and have a prismatic approach meaning that the model would satisfy the needs of more than one division at Jones Lang LaSalle. When reviewing existing models and practices at the company, the result became a tailored DCF valuation model that was focused on increasing efficiency of appraisers at Jones Lang LaSalle. Aside from being robust and technically sophisticated, the result also suited the specific needs of Jones Lang LaSalle in terms of features and user interface. Development of the model involved several divisions to ensure that the needs were met for Research & Valuation, Capital Markets, Corporate Solutions and Asset Management at Jones Lang LaSalle.
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Cardwell, Katharine Jean Zoglauer. "Equity research - Redes Energéticas Nacionais SGPS S.A. : examining DCF valuation model invariance." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/16520.

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Mestrado em Finanças
Este projeto contém uma análise financeira abrangente das Redes Energéticas Nacionais S.G.P.S, S.A (REN). Foi desenvolvido de acordo com os padrões do projeto final do Mestrado em Finanças do ISEG e escrito de acordo com as diretrizes do CFA Institute Research Challenge. A empresa em causa foi definida pela CFA Society Portugal, que a selecionou de entre as empresas que integram o Índice PSI20. A REN é o único operador e gestor em Portugal da infraestrutura de transmissão terrestres do Sistema Eléctrico Nacional e do Sistema Nacional de Gás Natural. Uma abordagem de soma total das partes (SoP) foi usada para atingir uma recomendação de compra com uma preço alvo de € 2,78 / ação para o final de 2018, implicando um potencial de valorização de +15% sobre a cotação de € 2,43 / ação em 9 de fevereiro. A avaliação principal é complementada com uma análise de robustez sobre a SoP, através da construção de um modelo de valor residual (também conhecido como lucro anormal) para avaliar as ações. O resultado geral confirma as estimativas de preço iniciais, no entanto, é analisado em mais detalhe um pressuposto relevante sobre o rácio price-to-book de longo prazo na avaliação da REN, uma vez que considera-se que este pressuposto causa uma grande variação no preço alvo. As informações utilizadas ao longo deste relatório estavam disponíveis publicamente à data de 9 de fevereiro de 2018, portanto, qualquer informação ou eventos subsequentes não foram considerados.
This project contains a comprehensive financial analysis of Redes Energéticas Nacionais S.G.P.S, S.A (REN). It was conducted in accordance with ISEG´s Master in Finance final work project standards and written following the CFA Institute Research Challenge guidelines. The subject company was assigned by CFA Society Portugal who selected it from the Portuguese PSI20 Index. REN is Portugal's sole operator and manager of the National Electric System's mainland transport infrastructure and the National Natural Gas System. A sum-of-the-parts (SoP) FCFF approach was used to reach a BUY recommendation with a 2018YE price target of €2.76/sh, implying a +15% upside potential from the February 9th closing price of €2.43/sh. The original research is extended in the current work to consider the robustness of the SoP valuation by constructing a residual income (also known as abnormal earnings) model to value the shares. The result overall confirms the original price targets, however a strong assumption regarding the long-term price-to-book ratio of REN's valuation is investigated and found to cause large variation in the resulting price targets. The information used throughout this report was publicly available as of February 9, 2018, thus any information or subsequent events have not been considered.
info:eu-repo/semantics/publishedVersion
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Lehmann, Christopher, and Alexander Alfredsson. "Intrinsic Equity Valuation : An Emprical Assessment of Model Accuracy." Thesis, Södertörns högskola, Institutionen för samhällsvetenskaper, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-30377.

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The discounted cash flow model and relative valuation models are ever-increasingly prevalent in today’s investment-heavy environment. In other words, theoretically inferior models are used in practice. It is this paradox that has lead us to compare the discounted cash flow model (DCFM), discounted dividend model (DDM), residual income-based model (RIVM) and the abnormal earnings growth model (AEGM) and their relative accuracy to observed stockprices. Adding to previous research, we investigate their performance in relation to the OMX30 index. What is more, we test how the performance of each model is affected by an extension of the forecast horizon. The study finds that AEGM outperforms the other models, both before and after extending the horizon. Our analysis was conducted by looking at accuracy, spread and the inherent speculative nature of each model. Taking all this into account, RIVM outperforms the other models. In this sense, one can question the rationale behind investor’s decision to primarily use the discounted cash flow model in equity valuation.
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Tran, Vinh. "Differential Impact of Investor Sentiment on the Capital Asset Pricing Model and Discounted Cash Flows Model Estimates of the Rate of Return on Equity." ScholarWorks@UNO, 2019. https://scholarworks.uno.edu/honors_theses/131.

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Traditional asset pricing models such as Capital Asset Pricing Model (CAPM) and Discounted Cash Flow (DCF) have been used widely in academics and practice due to their simplicity and popularity. The CAPM is a prescriptive model that describes the relationship between a stock’s required return and risk relative to the movements in the market, while the DCF is a descriptive model that measures the realized rate of return on a stock based on the market price of the stock, which in turn incorporates investor perceptions about the stock and the market. In an ideal, efficient market where investors behave rationally, we should not see much of a difference between stock returns estimated from these two models. However, because investor perceptions affect the DCF estimate of returns, changes in investor confidence without accompanying changes in firm risk can affect the DCF estimate without changing the CAPM estimate. High growth firm returns are more likely to incorporate changes in investor perception because more of their value is generated from realization of future growth opportunities. In this research, I study whether investor sentiment affects the DCF estimate of stock return more than the CAPM estimate, and whether this impact is more pronounced for high growth firms. I find results consistent with this hypothesis. I find that investor sentiment causes a divergence between the CAPM and DCF estimates of stock returns, and this divergence is higher for high growth firms compared to low growth firms. My findings suggest that high growth firm stock prices are more prone to distortions due to hype or investor pessimism.
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Berglerová, Lucie. "Ocenění podniku." Master's thesis, Vysoká škola ekonomická v Praze, 2013. http://www.nusl.cz/ntk/nusl-193748.

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The Master's Thesis aims to analyze and evaluate the Vitana company at 31st December, 2013. The thesis is divided into parts that correspond with the valuation process. First of all the Vitana company is described. The valuation starts with a strategic analysis where strengths and weaknesses, market development, industry, economy and competition are identified. This is followed by a financial analysis that explains the past of the Vitana company. To determine the value of the company it is necessary to define generators of value and make their prognosis. After that the financial plan is drawn up. Determining the value is accomplished by using three valuation methods: valuation by using DFCFF, valuation by using EVA and book value.
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Dinstuhl, Volkmar. "Konzernbezogene Unternehmensbewertung : DCF-orientierte Konzern- und Segmentbewertung unter Berücksichtigung der Besteuerung /." Wiesbaden : Dt. Univ.-Verl, 2003. http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&doc_number=010456960&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA.

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Strasser, Hans-Jürgen. "DCF-Bewertung von Versicherungsunternehmen /." Frankfurt, M. ; Berlin Bern Bruxelles New York, NY Oxford Wien : Lang, 2009. http://d-nb.info/996544119/04.

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Klim, Michal. "Ocenění inovativní organizace." Master's thesis, Vysoká škola ekonomická v Praze, 2013. http://www.nusl.cz/ntk/nusl-199528.

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The main objective of my thesis is to evaluate an innovative organization STOMATOLOGICKÉ CENTRUM MUDr. IVO MAREK s.r.o. and its innovative process. Evaluation method uses the discounted cash flows of APV variant. The innovation process value is estimated as a difference between the estimation of the organization value and a hypothetical estimation of the organization without the innovative process. The result shows that the innovative process has a significant effect on the overall value of the organization.
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Pienaar, Petrus Terblanche. "The use of the Discounted Cash Flow (DCF) method as a method of valuation within the South African property industry: A critical review." Master's thesis, University of Cape Town, 2015. http://hdl.handle.net/11427/14125.

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The Discounted Cash Flow method of property valuation is a fairly new method and research in other English speaking countries indicated a trend towards the use of the DCF method in preference to the Capitalization method despite an initial hesitance due to the perceived complexity of the method. The aim of this study was therefore to form an understanding if similar perception of complexity exists in South Africa and how these perception influence the perceptions and preference of use of the DCF method of valuation by valuation professionals within the South African context. The research was guided by three specific research questions which probed valuers' methodology preference, valuers' education, and difficulties experienced in accessing data needed for DCF valuation input variables. A mixed method research approach was adopted using questionnaire and document surveys to gather data from valuation professionals, lecturers of valuation education programs accredited with the SACPVP, and the curricula of these programs. The results indicate a general low preference for the use of the DCF method of valuation while the Capitalisation method is indicated as the most preferred method. This low preference was found to be the result of a high degree of difficulty experienced in accessing data needed for DCF valuation input variables. It was also found that the level of valuation education increases the acceptance and preference for the use of the DCF method.
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De, Kock Neil. "Cluster management synergy valuation: Synthesis and illustration of a discounted cash flow synergy valuation model for cluster management organisations." Master's thesis, University of Cape Town, 2016. http://hdl.handle.net/11427/20440.

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The practice of cluster management has become an integral component to the modern cluster business environment. This research develops a framework for the valuation of synergies generated by a cluster management organisation (CMO) to be used as either a method of (ex-post) management evaluation or (ex-ante) for capital budgeting purposes. The theoretical framework is synthesised from clustering and business alliance (predominantly Mergers and Acquisitions (M&A) and Joint Ventures (JV)), literature. The case of the South African Furniture Initiative (SAFI) was used to inform model development and to illustrate practical application of the theoretical synergy valuation model. The case study found that the synergy valuation model faces problems with practical application due to the wide variety of activities commonly associated with CMO goals and objectives. It concludes that even though a synergy framework would provide a useful tool for evaluation and capital budgeting, further research is required to develop a more accurate method of impact estimation.
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Books on the topic "Discounted cash flow (DCF) model"

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Strasser, Hans-Jürgen. DCF-Bewertung von Versicherungsunternehmen. Frankfurt am Main: PETER LANG, Internationaler Verlag der Wissenschaften, 2009.

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Pauly-Grundmann, Denise. Markenbewertung: Der objektivierte Markenwert unter besonderer Berücksichtigung des Income Approach. Wiesbaden: Gabler, 2010.

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Beckert, Jens, and Richard Bronk, eds. Uncertain Futures. Oxford University Press, 2018. http://dx.doi.org/10.1093/oso/9780198820802.001.0001.

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Uncertain Futures considers how economic actors visualize the future and decide how to act in conditions of radical uncertainty. It starts from the premise that since dynamic capitalist economies are characterized by relentless innovation and novelty, they exhibit an indeterminacy that cannot be reduced to measurable risk. The organizing question then becomes how economic actors form expectations and make decisions despite the uncertainty they face. The current microfoundations of standard economics cannot handle genuinely uncertain futures. Instead, uncertainty requires an entirely new model of economic reasoning. This edited volume helps lay foundations for this new model by showing how economic actors in practice form expectations in conditions of uncertainty. It draws on groundbreaking research in economic sociology, economics, anthropology, and psychology to present theoretically grounded empirical case studies that demonstrate the role of imaginaries, narratives, and calculative technologies—and their various combinations—in enabling economic actors to form expectations and cope with uncertain futures. The book examines risk management techniques, finance models, and discounted cash-flow models as well as methods of envisaging the future that overtly combine calculation with narrative structure and imaginaries. These include central bank forward guidance, economic forecasts, business plans, visions of technological futures, and new era stories. Considerable attention is given to how these fictional expectations influence actors’ behaviour, coordinate action, and provide the confidence to act, and how they become instruments of power in markets and societies. The market impact of shared calculative devices, social narratives, and contingent imaginaries underlines the rationale for a new form of narrative economics.
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Book chapters on the topic "Discounted cash flow (DCF) model"

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Viebig, Jan, and Thorsten Poddig. "Discounted Cash Flow (DCF) Models." In Equity Valuation, 1. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2015. http://dx.doi.org/10.1002/9781119208754.part1.

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Garrett, Donald E. "Profitability Analysis; Discounted Cash Flow (DCF)." In Chemical Engineering Economics, 81–106. Dordrecht: Springer Netherlands, 1989. http://dx.doi.org/10.1007/978-94-011-6544-0_6.

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Langenkämper, Christof. "Formelorientierte Unternehmensbewertung mit Discounted Cash Flow (DCF)-Methoden." In Unternehmensbewertung, 38–160. Wiesbaden: Deutscher Universitätsverlag, 2000. http://dx.doi.org/10.1007/978-3-663-09077-9_3.

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Atra, Robert J., and Rawley Thomas. "Developing an Automated Discounted Cash Flow Model." In The Valuation Handbook, 108–34. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2011. http://dx.doi.org/10.1002/9781118268179.ch5.

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Minang Nathalia, Astried, and Zuliani Dalimunthe. "Valuation of stock using the discounted cash flow model and Ministry of Finance regulation: Study of PT Indosat Tbk." In Business Innovation and Development in Emerging Economies, 106–16. Leiden, The Netherlands : CRC Press/Balkema, [2019]: CRC Press, 2019. http://dx.doi.org/10.1201/9780429433382-11.

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Duari, Nirmal Kumar, and Tripti Chakrabarti. "On Reserve Money for a Fuzzy EOQ Model in an Inflationary Environment Under Supplier Credit." In Handbook of Research on Promoting Business Process Improvement Through Inventory Control Techniques, 327–48. IGI Global, 2018. http://dx.doi.org/10.4018/978-1-5225-3232-3.ch018.

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We propose to derive a deterministic inventory model for a time varying deterioration rate with an exponential fuzzy demand over a finite planning horizon in this study. We assume that the supplier offers a credit limit to the retailer during which there is no interest charged. However, the retailer has the reserve capital with him to make the payments at the beginning of the transaction, but he decides to take the benefit of the credit limit. Each cycle has shortages, which have been partially backlogged to suit present day competition in the market. Also, the whole study has been done in an inflationary environment using the Discounted Cash Flow (DCF) approach to impart economic feasibility to the model. Numerical examples have been presented with the help of lingo software.
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"Discounted Cash Flow (DCF)." In The Income Approach to Property Valuation, 57–70. Estates Gazette, 2012. http://dx.doi.org/10.4324/9780080966915-8.

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Hafner, Ralf. "2 Discounted Cash Flow Valuation (DCF Valuation)." In Corporate Valuation, 15–46. UVK Verlagsgesellschaft mbH, 2017. http://dx.doi.org/10.24053/9783739803258-16.

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"Economics of the Discounted Cash Flow Valuation Model." In Flexibility and Real Estate Valuation under Uncertainty, 11–19. Chichester, UK: John Wiley & Sons, Ltd, 2018. http://dx.doi.org/10.1002/9781119106470.ch2.

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"Unternehmensbewertung auf der Grundlage von Discounted Cash Flow (DCF)-Verfahren und des Economic Value Added (EVA)." In Internationale Rechnungslegung, Prüfung und Analyse, 500–509. Oldenbourg Wissenschaftsverlag, 2004. http://dx.doi.org/10.1515/9783486816488.500.

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Conference papers on the topic "Discounted cash flow (DCF) model"

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La¨uferts, Ulrike, Charlotte Halbe, and Aliki van Heek. "Value-Creating Investment Strategies to Manage Risk From Structural Market Uncertainties: Switching and Compound Options in (V)HTR Technologies." In Fourth International Topical Meeting on High Temperature Reactor Technology. ASMEDC, 2008. http://dx.doi.org/10.1115/htr2008-58157.

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To measure the value of a technology investment under uncertainty with standard techniques like net present value (NPV) or return on investment (ROI) will often uncover the difficulty to present convincing business case. Projected cash flows are inefficient or the discount rate chosen to compensate for the risk is so high, that it is disagreeable to the investor’s requirements. Decision making and feasibility studies have to look beyond traditional analysis to reveal the strategic value of a technology investment. Here, a Real Option Analysis (ROA) offers a powerful alternative to standard discounted cash-flow (DCF) methodology by risk-adjusting the cash flow along the decision path rather than risk adjusting the discount rate. Within the GEN IV initiative attention is brought not only towards better sustainability, but also to broader industrial application and improved financing. Especially the HTR design is full of strategic optionalities: The high temperature output facilitates penetration into other non-electricity energy markets like industrial process heat applications and the hydrogen market. The flexibility to switch output in markets with multi-source uncertainties reduces downside risk and creates an additional value of over 50% with regard to the Net Present Value without flexibility. The supplement value of deploying a modular (V)HTR design adds over 100% to the project value using real option evaluation tools. Focus of this paper was to quantify the strategic value that comes along a) with the modular design; a design that offers managerial flexibility adapting a step-by-step investment strategy to the actual market demand and b) with the option to switch between two modes of operation, namely electricity and hydrogen production. We will demonstrate that the effect of uncertain electricity prices can be dampened down with a modular HTR design. By using a real option approach, we view the project as a series of compound options — each option depending on the exercise of those that preceded it. At each end of the design phase, the viability will be reviewed conditional on the operating spread at each time step. We quantify the value of being able to wait with the investment into a next block until market conditions are favourable and to be able to abandon one block if market conditions are disapproving. To derive the intrinsic value of this multi block HTR design, it will be compared with a reference investment of a full commitment light water reactor without any managerial flexibility. In another case, we raise the question to what extent product output diversification is a suitable strategy to cope with long term market uncertainty in electricity price. What is the value of a multi-potent technology that is able to produce output for energy markets others than the electricity market? To investigate this, we concentrate on The Netherlands, a country with an intense industrial demand in electricity and hydrogen.
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Locatelli, Giorgio, Mauro Mancini, and Alessandro Galli. "Introducing Nuclear Power Plants in an OECD Country: Size Influence on the External Factors." In 18th International Conference on Nuclear Engineering. ASMEDC, 2010. http://dx.doi.org/10.1115/icone18-29460.

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A traditional investment evaluation approach is generally closed with a financial lifecycle performances investigation based on multiple analysis of Discounted Cash Flows (DCF). The international literature is rich of studies about the economics of new Nuclear Power Plants (NPPs), considering the classical accounts related to Construction, Operation & Maintenance, Fuel and Decommissioning. Financial analyses are important but the evaluation of such projects needs a multidimensional approach: besides economics, other technical, social and market factors have to be taken into account too. The Integrated model for the Competitiveness Assessment of SMRs (INCAS), developed by “Politecnico di Milano” cooperating with the IAEA, is designed to analyze the choice of the better NPP size as a multidimensional problem. The INCAS model aims to become the framework for the comparison between “Deliberately Small Medium Reactors (SMRs)” and “Large Reactors (LRs)”, with respect to a specific country situation or “scenario”. In particular the INCAS’s module “External Factors” evaluates the impact of factors not considered in the traditional DCF methods (siting and grid constraints, impact on the national industrial system, etc…) but critical for the decision of the plant size to deploy. This paper presents a completely updated version of the “External Factors model” framework under development since 2007. First it presents each factor, providing an adequate background and the quantification procedure, and then each factor is quantified respect to the Italian case. The IRIS reactor has been chosen as SMR representative. Even if the results are related to the Italian situation, they can apply to most of the European countries and the framework of the model can be used for all the countries. The results show that SMRs have better performances than LRs with respect to the external factors, in general and in the Italian scenario in particular.
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Gbakon, Kaase. "Impact of the Finance Act 2020 on Gas Utilization Projects." In SPE Nigeria Annual International Conference and Exhibition. SPE, 2021. http://dx.doi.org/10.2118/207104-ms.

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Abstract The newly passed Finance Act 2020 (FA2020) in Nigeria is reviewed especially as it relates to the oil and gas industry. The review is partly executed by modeling the specific provisions of the Act that impact gas utilization projects. The effect of the provisions on investor returns as well as the extent to which government objectives are met is ascertained – the government objectives being to prevent tax leakage via excessive financing costs, as well as encourage gas development and utilization. A qualitative assessment of the FA2020 is first conducted to examine its provisions applicable to the oil and gas sector. Furthermore, a spreadsheet Discounted Cash Flow (DCF) economic model of a gas central processing facility is built. A hypothetical $800Million (CapEx), 300mmscfd gas processing facility, which is 70% debt financed is modeled by incorporating the provisions of the FA2020. The metrics of the project (both investor and government) are then compared under the scenarios of with and without the FA2020. Key results indicate that the economic returns to investor in the gas processing facility are still largely preserved at a healthy level, even as government take improves by $102Million due to the FA2020. Specifically, without the FA2020, investor returns an IRR of 21.11% while due to the FA2020, investor IRR declines to 19.79%. Sensitivity analysis serves to illustrate one of the aims of the FA2020, which is to prevent tax loss from high cost of financing. Lengthening the tenor of loans reduces the fraction of the financing costs that is tax deductible. The modeling result shows that, ceteris paribus, for one (1) year increase in loan tenor, the amount of financing cost that is tax deductible reduces by 5%. Another important outcome is that for every $1 of government receipts preserved/enhanced by the FA, the investor NPV declines by 38cents This impact assessment of the FA2020 on gas utilization projects is conducted against the backdrop of several government pronouncements and policy positions to encourage domestic gas development. Financing plays an important role in delivering gas projects, consequently the evaluation of the impact of the FA2020 becomes imperative. This is to allow an examination of the effect of the Act on the ability to meet the strategic objective of powering the economy via gas while fulfilling Nigeria’s climate change commitments by deeper adoption of gas as a transition fuel.
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Li, Yaokuang, Qian Yang, and Xinxin Jin. "The study of the cut-off point about the two-stage discounted cash flow model." In 2010 2nd International Conference on Information Science and Engineering (ICISE). IEEE, 2010. http://dx.doi.org/10.1109/icise.2010.5689031.

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Kawajiri, Kotaro, and Kazuo Ohno. "A novel scheme to evaluate a venture business quantitatively and support decision making for incubator by combining discounted cash flow and Bass model." In Technology. IEEE, 2009. http://dx.doi.org/10.1109/picmet.2009.5261954.

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Lall, Pradeep, Ryan Lowe, and Kai Goebel. "Cost Assessment for Implementation of Embedded Prognostic Health Management for Electronic Systems." In ASME 2012 International Mechanical Engineering Congress and Exposition. American Society of Mechanical Engineers, 2012. http://dx.doi.org/10.1115/imece2012-93058.

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Prognostic health management (PHM) is a method for assuring the reliability of a system by monitoring the system in real time as it is used in the field. As the system wears out, but before failure, information that facilitates decision making about the future use of the system is delivered to the user. In this paper, a cost justification has been developed for incorporating the additional circuitry needed to enable prognostics for electrical components directly onto a functional circuit board. Implementing PHM capability for circuit boards will add additional cost to a system, so high reliability systems where the cost of failure is high are easiest to cost justify for prognostics. Aerospace, defense and automotive, applications qualify as high reliability systems. Application domains that require high uptime, minimal amounts of unplanned maintenance, and controllable operating costs can also be cost justified for prognostics since they can benefit from the pro-active management of failures facilitated by PHM. Intangible criteria such as safety or the cost of human life also motivated the need for PHM, so often times projects are labeled strategic, and not subjected to the discipline of a financial analysis. This paper will show rigorous methods for assessing the decision to invest in PHM for electronics. The uncertain nature of research and development (R&D) and difficult to predict future economic conditions is not well captured by traditional discounted cash flow (DCF) methods. An approach known as the Datar-Mathews (DM) method will extend the DCF methods to be equivalent to a real options analysis and the Black-Scholes formula. The DM method is intuitive and uses concepts familiar to most engineers and technical managers.
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King, Carey W., Gu¨rcan Gu¨len, Joseph Essandoh-Yeddu, and Susan Hovorka. "Economic Analysis of an Integrated Anthropogenic Carbon Dioxide Network for Capture and Enhanced Oil Recovery Along the Texas Gulf Coast." In ASME 2009 3rd International Conference on Energy Sustainability collocated with the Heat Transfer and InterPACK09 Conferences. ASMEDC, 2009. http://dx.doi.org/10.1115/es2009-90415.

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This paper explains the system economics of an example integrated network that uses anthropogenic CO2 from Texas Gulf Coast fossil power plants for enhanced oil recovery (EOR). These CO2 sources and sinks are connected via a pipeline network. A discounted cash flow model indicates that for all candidate oil fields that require less than an estimated $10/BBL in EOR capital expenditure, all three entities (CO2 capture, pipelines, and EOR operators) can have 20% internal rate of return at $55 per tonne of CO2 and $56 per barrel of oil. These results include no existing or future tax incentives, and there are some costs not yet included. However, a Monte Carlo analysis shows insight by indicating that the total system rate of return is most sensitive to oil production parameters. Oil price and estimated amount of recoverable oil are the most positively influential factors while the EOR capital cost is the most negatively sensitive factor. The capital costs of capture and CO2 price are less sensitive, both negatively affecting rate of return.
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