Flows to equity
Encyclopedia
The Flow to Equity-Approach is one of three commonly used discounted-cash-flow (DCF) methods of corporate valuation, the other two are Adjusted Present Value
and Weighted Average Cost of Capital
(WACC).
Adjusted present value
Adjusted Present Value is a business valuation method. APV is the net present value of a project if financed solely by ownership equity plus the present value of all the benefits of financing...
and Weighted Average Cost of Capital
Weighted average cost of capital
The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets....
(WACC).