Dcf analysis - Study guides, Class notes & Summaries

DCFs1 Question and answers already passed 2023/2024 What's the basic concept behind a Discounted Cash Flow analysis? - correct answer The concept is that you value a company based on the present value of its Free Cash Flows far into the future. You divide the future into a "near future" period of 5-10 years and then calculate, project, discount, and add up those Free Cash Flows; and then there's also a "far future" period for everything beyond that, which you can't estimate as precise...

USPAP 15-hour course Questions and Answers 100% Pass The concept of public trust means that an appraiser must act: in the public's interest USPAP establishes standards that are applicable in the appraisal of: real property, intangible property, and personal property Which statement is TRUE regarding The Appraisal Foundation and USPAP enforcement authority? The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. Which entity is responsible for establishing e...

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way and it's best to say that it's more variable than ot...

professional appraisal practice - -imperfect information -reliable data & analysis applies -an appraisal is only as good as the appraiser & data available -OPINION of value -UNBIASED opinion of a 3rd PARTY with no direct interest in the property -Uniform Standards of Professional Appraisal Practice (USPAP) -Code of Ethics sales comparison (market) approach - -value of RE can be determined by analyzing the sale prices of similar properties -in a competitive market, close substitutes shou...

True or False: ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation- DCF, ARGUS Asset Management, and ARGUS Valuation-Capitalisation - Answer-True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. - Answer-True In AE, a user can add over 100 properties into a portfolio. - Answer-True Which is a benefit to utilizing a Chart of Accounts? a) Easier to track Revenues/Expenses b) Standardizes portfolio for n...

Discounted Cash Flow Analysis the value of a company can be derived from the PV of its projected FCF (free cash flow) What kind of value is DCF? (intrinsic value or market value) Intrinsic Value, as opposed to market-values such as Company Comparables or Precedent Transactions Projection Period Length 5 years Terminal Value - used to capture the remaining value of the target beyond the projection period -used to quantify the remaining value of the target after the projection period Weighted ...

DCF VALUATION MODELING EXAM REVIEW QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED. 3 Key points on model drivers? - -1. The two most important model drivers are sales volume and sales price. 2. You start by finding the minimum and maximum levels of the model drivers. 3. Only model drivers need to be tested A DCF is an example of a _______ valuation A. Relative B. Cost C. Absolute Valuation D. Intrinsic Valuation E. Market Valuation - -C & D: Absolute and Intrinsic Valuation Advanta...

Adventis FMC Level 2 Latest Update Rated A+ what is value what people are willing to pay for (what the buyer pays) who said, "Value is what people are willing to pay for" John Naisbitt 2 primary types of valuation 1. relative valuation 2. intrinsic valuation relative valuation refers to what methods that compare the price of a company to the market value of similar assets intrinsic value refers to what the value of a company through fundamental analysis without reference to its market valu...

ARGUS Enterprise merges which 3 industry standard valuation and asset management solutions? - Answer ARGUS Valuation - DCF ARGUS Asset Management (formerly DYNA) ARGUS Valuation - Capitalisation (formerly Circle) ARGUS Enterprise is: - Answer - A financial analysis tool for projecting cash flows, returns and valuations associated with office, industrial, retail, multifamily, and mixed-use properties. - A tool for property acquisition and disposition. - A financial model that is easy t...

Series 79 - Chapter 7 Discounted Cash Flow Analysis - correct answer Fundamental valuation methodology derived from the present value of its projected free cash flow (FCF) Free Cash Flow - correct answer Utilized in DCF and derived from a variety of assumptions and judgments about its expected financial performance, including sales growth rates, profit margins, capital expenditures, and net working capital (NWC) Intrinsic Value - correct answer Valuation implied for a target by a DCF. As ...