Over-valuation: avoid double counting when retaining dividends in the FCFE valuation

Article English OPEN
Silva, J. M.; Pereira, J. A.;
  • Publisher: Sciedu Press
  • Related identifiers: doi: 10.5430/ijfr.v8n4p107
  • Subject: Valuation | Free cash flow | Discounted cash flow | Reinvestment performance

Valuation based on DCF (Discounted Cash Flow) has been the dominant valuation procedure during the last decades. In spite of this dominance, enterprise valuation using the discounted FCF (Free Cash Flow) model has some practical drawbacks, since there is often some conf... View more
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