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Discounted Cash Flow Valuation: Estimating Inputs

ABFM, AccountingBy Ashish Karkera August 17, 2025

Estimating inputs for a ‘Discounted Cash Flow (DCF) valuation’ is one of the most critical skills in corporate finance. Whether for banking, investment analysis, or project evaluation, accurate input estimation forms the foundation of a reliable valuation model. Introduction to DCF Valuation The DCF approach values a business, asset, or investment based on its ability…

Discounted Cash Flow Approach: Step-By-Step Guide to Valuation

ABFM, AccountingBy Ashish Karkera August 17, 2025

Introduction Understanding the true value of a business or investment opportunity is essential in finance. Among the various valuation methods, the Discounted Cash Flow (DCF) approach stands out for its robust, future-focused perspective. This article explores the core steps involved in conducting a DCF analysis, helping both professionals and beginners grasp how to estimate intrinsic…

Direct Comparison Approach in Corporate Valuations

ABFM, AccountingBy Surendra Naik August 16, 2025

Introduction In the world of corporate valuations, one of the most practical and widely used methods is the Direct Comparison Approach. This method estimates the value of a company by comparing it with similar businesses that have been recently valued, sold, or listed in the market. Because it closely mirrors real market activity, it is…

Stock and Debt Approach in Corporate Valuations

ABFM, AccountingBy Surendra Naik August 16, 2025

In corporate finance and banking, understanding how to value a company is at the heart of smart decision-making. Whether it’s for investment, lending, mergers, or acquisitions, professionals rely on different valuation methods. One such method, widely respected for its practicality, is the Stock and Debt Approach. This method looks at both a company’s equity (stock)…

Adjusted Book Value Approach in Corporate Valuations

ABFM, AccountingBy Ashish Karkera August 16, 2025

Valuing a company accurately is fundamental for banking professionals, investors, and financial analysts. Among the various valuation methods, the Adjusted Book Value Approach stands out as a pragmatic and reliable way to determine a company’s worth by refining the traditional book value to better reflect economic realities. What is the Adjusted Book Value Approach? The…

Approaches to Corporate Valuation

ABFM, AccountingBy Ashish Karkera August 16, 2025

In the realm of corporate finance and banking, understanding how to accurately value a company is essential for investment decisions, mergers and acquisitions, financing, and strategic planning. Corporate valuation involves estimating the economic value of a business or company, and there are several approaches commonly used by analysts and investors. This article explores the primary…

Cash Flow Estimation in Capital Budgeting: A Comprehensive Overview

ABFM, AccountingBy Ashish Karkera August 13, 2025

IntroductionCash flow estimation in capital budgeting involves forecasting the future cash inflows and outflows associated with a proposed investment. Since these cash flows form the primary basis for assessing the financial viability of a project, accuracy in their projection is critical. The process typically includes estimating the initial cash outflows, annual operating cash inflows, and…

Methods of Investment Appraisal

ABFM, AccountingBy Ashish Karkera August 12, 2025

Investment appraisal methods are techniques used to evaluate investment proposals and assist companies in determining their desirability based on their income-generating potential. These methods also help rank proposals in order of preference. A sound appraisal method should enable the company to measure the real worth of a proposal and make informed accept-or-reject decisions. Investment appraisal…

Understanding NPV, IRR, DCF… in capital budgeting

ABFM, AccountingBy Ashish Karkera August 12, 2025

(This post explains what are NPV, IRR, DCF, Time value of money, Hurdle rate or opportunity cost of capital, accounting rate of return, pay- back period etc.) The price of groceries or any other items purchased by you today will not be same next year. The purchasing ability of a Rupee today is different (normally…

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