Business, Management and Accounting
4 years ago

New study reveals consistent value estimates for financial models in tax worlds.

1 view
Cuadernos Latinoamericanos de Administración
Consistent value estimates from the Discounted cash flow (DCF) and residual Income (RI) models in M & M worlds without and with taxes
Joseph Tham

Paper Summary

The article compares two methods, DCF and RI, for estimating the value of companies in different financial situations. The researchers found that the estimates from both methods were consistent in worlds with and without taxes. This suggests that both DCF and RI models can be reliable for valuing companies, regardless of tax implications.

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