Financial Modeling & Valuation: An Applied Integrated Framework for Practitioners
Financial Modeling & Valuation, Forthcoming
41 Pages Posted: 6 May 2019
Date Written: May 2, 2019
This is a draft of Chapter 1 for an upcoming book on Financial Modeling & Valuation. Informally, the chapter introduces the basic concepts in cash flow valuation. It reviews the different types of finite cash flows and discusses the cost of capital with and without taxes in a world with perfect capital markets. We present the Free Cash Flow (FCF) and the Capital Cash Flow (CCF). This chapter is the foundational background for understanding the subsequent chapters.
Keywords: Financial modeling, Valuation, Weighted Average Cost of Capital (WACC), Free Cash Flow (FCF)
JEL Classification: D61, H43, M21, M40, M46, G12, G31, G33
Suggested Citation: Suggested Citation