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  • May 1995 (Revised October 1995)
  • Background Note
  • HBS Case Collection

Introduction to Cash Flow Valuation Methods

By: Richard S. Ruback
  • Format:Print
  • | Language:English
  • | Pages:9
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Abstract

Provides an introduction to three cash flow valuation methods. The three methods differ in their measure of cash flows and the discount rate applied to those cash flows. The names for the three methods correspond to the type of cash flow that is used in the valuation: Equity Cash Flow (ECF), Capital Cash Flow (CCF), and Free Cash Flow (FCF). The three methods provide consistent valuations when applied correctly.

Keywords

Cash Flow; Valuation

Citation

Ruback, Richard S. "Introduction to Cash Flow Valuation Methods." Harvard Business School Background Note 295-155, May 1995. (Revised October 1995.)
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About The Author

Richard S. Ruback

Finance
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  • Rent Control in Boston, Again? By: Robin Greenwood, Richard S. Ruback, Robert Ialenti and Tom Quinn
  • Natural Gas in New England By: Robin Greenwood, Richard S. Ruback and Gil Highet
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