Valuing an entire company,an operating division of that company,or its ownership shares involves three basic steps.These steps include all of the following except:

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The three basic steps for valuing a company do not include determining the dividends the company will pay in the future based on the company's dividend policy and expected future earnings, as this is only relevant for valuing the company's ownership shares through the dividend discount model. The three steps are forecasting future amounts of some financial attribute, determining the risk or uncertainty associated with the forecast future amounts, and determining the discounted present value of the expected future amounts using an appropriate discount rate.

Valuing an Entire Company,an Operating Division of That Company,or Its