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042-009 - Net Present Method Of Valuation

A valuation method used for any business, but particularly those businesses that do not have historical earnings, is the Net Present Value Method. The process involves taking the projected net operating cashflows over a certain period and then discounting those cashflows back to the present using a ...Read more
$11.00


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A valuation method used for any business, but particularly those businesses that do not have historical earnings, is the Net Present Value Method.

The process involves taking the projected net operating cashflows over a certain period and then discounting those cashflows back to the present using an interest rate in line with the risk/reward parameters investors are looking for (Internal Rate of Return - IRR).