When would you not use a DCF in a Valuation?

We do not use a DCF if the company has unstable or unpredictable cash flows (tech or bio-tech start-up) or when debt and working capital serve a fundamentally different role. For example, banks and financial institutions do not re-invest debt and working capital is a huge part of their Balance Sheets – so you wouldn’t…...

To get access, please buy CA Interview Question Bank
Already a member? Log in here
Scroll to Top