Warren Buffett on discounted cashflow valuation
”Warren Buffett uses what’s called a discounted cashflow analysis. He looks at how much cash the business generates each year, projects it into the future and then calculates the worth of that cash flow stream “discounted” using the long-term...
The Asset Valuation Method
What is the Asset Valuation Method and how do we Value a Business on the basis of Assets? Asset valuation is where you assign separate values on a going concern basis to all the assets of the business and value the business at the total figure. Its shortcomings are:...
