Question added by Riaz Ali Khan Khan
, Director Finance , Khyber Teaching Hospital/Khyber Medical College/Khyber College of Dentistry
Date Posted: 2014/09/30
- The way the discount cash flow model This method to develop hypotheses by predicting the financial status of the company until the end of the order specified according to the useful life of the assets of the company and its associated expectation of the results of the business, financial position and cash position, and then discount the expected net cash flows of the company by a factor of discount is appreciated, including rates take into account borrowing interest in accordance with the the cost of funding sources and the risk of activityTaking into account the following: - Future benefits that are expected to obtain the angel.- The timing of receipt of those benefits.- The degree of risk borne by the investor.Meaning that the DCF method relies on the basis that the value of the investment is a present value of future economic income of this investment 2. multiplier method profitability Way coefficient profitability depends on the basis of calculating the expected earnings per share for fiscal year hits the return in profitability in force multiplier for similar companies traded in the stock market, which exercise the same activity scale.Expected dividend per share for the year = per share in cash distributions + reserves + is being held from the profits.Multiplier profitability of shares traded = arrow in an active market ÷ price to earnings per share in the profits.
