If cash flow is deemed to be the most important consideration in buying a business, which of the following valuation methods is likely to be used?

Question

Quizplus · Accepted Answer

Discounted future earnings is the valuation method that focuses on the cash flow a business is expected to generate in the future. This method discounts the future cash flows back to their present value, making it the most relevant for buyers prioritizing cash flow considerations.

If Cash Flow Is Deemed to Be the Most Important