E47 - Money and Interest Rates: Forecasting and Simulation: Models and ApplicationsReturn
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Problems in justifying the accuracy of projected Free Cash Flow DCF-based valuationsJaroslav BradaOceňování 2021, 14(3):3-20 | DOI: 10.18267/j.ocenovani.263 The paper has shown by which procedures the correctness of the constructed plans of the drainable FCFs in two-phase DCF methods can be disassembled. Using the falsification principle (K. Popper), it is reminded that the correctness of the constructed Free Cash Flow FCF) cannot be known and confirmed. The only logically incorrect plan of the constructed FCF can be known. Some ways of misrepresenting the size of the FCF from economic reality are presented. |