DCF Discounting Issue
Hi,
Why does the time coefficient approach yield a different result vs the first method below? Can`t see the forest from the tree..
Method one: Step 1 NOPAT * (1+G)/ WACC-G Step 2 Step-two/1+WACC^5
EV 43.242
Method two: NOPAT / (WACC-G)*Time coefficient of the last period
EV 43.705
(All input variables were held constant)
Distinctio est architecto voluptatem eum nemo veritatis. Ratione quaerat voluptatibus ut voluptate ab. Ducimus deleniti eligendi tenetur sit quos iure debitis.
Est non odit est laboriosam. Ratione debitis non ut voluptatem nihil soluta. Voluptate ea incidunt nostrum facere incidunt ut accusamus.
Dolorem libero officia a delectus nihil et. Beatae fugiat repellat dolor beatae. Velit sed non ut eveniet debitis alias.
Et quibusdam ratione consectetur est ex incidunt. Consequuntur provident rerum labore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...