Assignment 2: Discussion—Valuation

In this discussion, we consider the discounted cash flow method for valuing a company in order to understand the important drivers of valuation.

Address the following:

• Explain the discounted cash flow approach for valuing a business.
• Discuss at least four important drivers to the final valuation in the model.
• Explain how each of these drivers impacts the final value in the model.

Create a response in 2-3 paragraphs to the discussion question. Cite sources and include references in your response. Submit your response to the Discussion Area by Sunday, October 9, 2016. Through Wednesday, October 12, 2016, review and comment on at least two peers’ responses.