Problems in justifying the accuracy of projected Free Cash Flow DCF-based valuations

Problémy při odůvodňování správnosti plánovaných odčerpatelných peněžních toků v oceněních založených na metodách DCF

Jaroslav Brada

Oceňování, 2021, vol. 14, issue 3, 3-20

Abstract: The paper has shown by which procedures the correctness of the constructed plans of the drainable FCFs in two-phase DCF methods can be disassembled. Using the falsification principle (K. Popper), it is reminded that the correctness of the constructed Free Cash Flow FCF) cannot be known and confirmed. The only logically incorrect plan of the constructed FCF can be known. Some ways of misrepresenting the size of the FCF from economic reality are presented.

Keywords: Free Cash Flow; DCF valuation; Planing in DCF; Oceňování DCF; Plánování v DCF (search for similar items in EconPapers)
JEL-codes: E47 G31 H43 (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ocenovani.vse.cz/doi/10.18267/j.ocenovani.263.html (text/html)
http://ocenovani.vse.cz/doi/10.18267/j.ocenovani.263.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnloce:v:14:y:2021:i:3:id:2021_3_01:p:3-20

Ordering information: This journal article can be ordered from
Editorial office Ocenovani, Prague University of Economics and Business, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic
http://ocenovani.vse.cz

DOI: 10.18267/j.ocenovani.263

Access Statistics for this article

Oceňování is currently edited by Časopis Oceňování

More articles in Oceňování from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().