Background Note | HBS Case Collection | June 2005 (Revised November 2006)

Valuation Methods and Discount Rate Issues: A Comprehensive Example

by Marc L. Bertoneche and Fausto Federicic

Abstract

Presents a comprehensive review of the valuation methods based on discounting cash flows or value creation metrics and shows, through simple example and a straightforward "how-to-do" framework, the perfect consistency and identity of their results under similar assumptions.

Keywords: Valuation;

Citation:

Bertoneche, Marc L., and Fausto Federicic. "Valuation Methods and Discount Rate Issues: A Comprehensive Example." Harvard Business School Background Note 205-116, June 2005. (Revised November 2006.)