According to the traditional financial theory, the discounted cash flow model (or NPV) functions as the fundamental framework for the majority of analyses. In performing valuation analysis, the traditional view is that the net present value (NPV) of a project is the
To measure shareholder value creation has been the issue of discussion all around the world. It has become crucial since the companies were increasingly committing to creating shareholder value. Old traditional measures are criticised for having low correlation with shareholder value creation.
The purpose of this thesis is to compare the practical use of the DCF model with the theoretical recommendations. The empirical study is based on eight different DCF models performed by American, European and Nordic investment banks on the Swedish retail company
The value of an asset is the present value of its expected returns. The most frequently used valuation method for traded firms is the Discounted Cash Flow Analysis. The required rate of return used to discount the cash flows for traded firms