Ten methods for valuing companies yield same value, changing finance game.
The study found that ten different methods for valuing companies using cash flow discounting always give the same value when the same assumptions are used. These methods include WACC, equity cash flow, and adjusted present value. Despite their differences, all methods analyze the same reality based on the same assumptions. Seven of the methods require an iterative process, while only the APV and business risk-adjusted cash flows methods do not require iteration.