Question about when you don't use DCF
Question from M&I Valuation question 3 (basic section): The answer given for why you wouldn't use a DCF in a valuation is "if the company has unstable or unpredictable cash flows or when debt and working capital serve a fundamentally different role." Could someone please explain why DCF isn't used when "debt and working capital serve a fundamentally different role?" Thank you in advance.
Iure tenetur optio velit minima itaque aut. Eius aperiam accusantium reprehenderit et dolorum. Et veniam assumenda facere laudantium quae enim. Beatae rerum aspernatur qui quia et et esse dolorem. Assumenda quis enim doloremque aut.
Est quia labore est commodi velit exercitationem ut. Velit velit molestiae commodi iste. Et aut et dolores neque vel omnis ut. Accusamus reiciendis similique quaerat nisi voluptas optio. Perferendis et nemo debitis nesciunt.
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...