Valuation of share under dcf method

Dear Experts,


A new company was formed having foreign resident shareholding(initial subcriber to MOA). Company was incorporated on 15-Dec-10 and share money received on 23-Mar-11.
Pls guide how to use the DCF Method in this scnerio and what all documents are required as base of the valuation.

Thanks & Regards,
CA.Ankit Tulsyan

Replies (5)

Hi Ankit,

as you said you want to use DCF method on a company which is established Dec-10. 

Well the thing is you wont be able to use DCF method effectively.

As DCF is used on companies having atleast past history or recods of Financial statements of about 5 years. Based on the past record or growth rate and taking into account the present factors of the company or sector future prospects of te financials are done through DCF method.

as this company is not even a year old the effectiveness wont come on the analysis.

So I would advise not to do DCF calculation.

It would rather be to wait an watch the company for a year or 2 and then may be you can compare it with peer company of same features with relative valuations.

hope this helps you out.

Thanks

 

Originally posted by : Ankit Tulsyan


Dear Experts,


A new company was formed having foreign resident shareholding(initial subcriber to MOA). Company was incorporated on 15-Dec-10 and share money received on 23-Mar-11.
Pls guide how to use the DCF Method in this scnerio and what all documents are required as base of the valuation.

Thanks & Regards,
CA.Ankit Tulsyan

now the situation to stress on how to develp.....................................don't be afraid get the chance .........................

Dear Sir,

KIndly give me the format of Valuation of shares on Discounted Cash flow method.

I want to know the format and concept of valuing shares under this method.

Kindly provide us please.

 

CA Alok Kumar Prusty

HELLO ALL,

I am in urgent need for the format of valuation of shares as per DCF method..i want to project next 5 year cash flow on the base of current year data..Pls help by sending file at manmeet.jain @ yahoo.co.in

 

I am in urgent need for the format of valuation of shares as per DCF method..i want to project next 5 year cash flow on the base of current year data..Pls help by sending file at sunil.bansal100 @ gmail.com

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