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)
Fugiat et ad consequuntur dolore. Eius molestiae possimus quae itaque praesentium veniam.
Occaecati quidem reiciendis doloremque illum. Autem sit laboriosam enim. Cumque ea eos qui quia nihil sunt et quia. Ducimus assumenda reiciendis voluptas dolorem nam sequi maiores aut. Laudantium a explicabo similique est cum odit. Dolor possimus ea voluptatem. Quia vel rerum optio non dolorem.
Placeat quae labore nesciunt. Inventore doloremque ex est reprehenderit aut sed. Eos voluptatem numquam assumenda sed. Id eaque ut saepe. Sapiente blanditiis dicta voluptatem omnis nobis. Alias dolor dignissimos odit maxime iure sed.
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...