If you want to value a firm but do not want to explicitly forecast its dividends,share repurchases,or its use of debt,what is the simplest model for you to use?

Question

Quizplus · Accepted Answer

The discounted free cash flow model is the simplest and most appropriate choice for valuing a firm without needing to explicitly forecast its dividends, share repurchases, or use of debt. This model focuses on the cash flows generated by the company's operations that are available to all capital providers, thus avoiding the need to forecast specific shareholder or debt-related cash flows.

If You Want to Value a Firm but Do Not