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Other Non-DCF Valuation Models
What is the fundamental difference between DCF and Non-DCF valuation models?
Non-DCF models ignore time value of money; DCF discounts future cash flows.
Define Payback Period as a Non-DCF capital budgeting tool.
Time required for cumulative cash inflows to equal initial investment; no discounting applied.
What is the core principle of Relative Valuation Model?
Estimate asset worth by comparing to prices of comparable assets currently selling in market.
How many comparable companies should typically be shortlisted in relative valuation?
3 to 4 companies selected from 10 to 15 firms in same industry after research.
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