Asset-based Approach Net Present Value Weighted Average Cost of Capital 
Valutico
OCTOBER 20, 2022
Context of DCF: There are three main approaches to calculating a company’s value. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. the asset-based approach also known as the cost-based approach, and finally 3. The first is 1.
Valutico
MAY 6, 2024
These cash flows represent the net amount of cash that is expected to be received over the investment period. The future cash flows are then discounted back to their present value using a discount rate. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.
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