Question: What is the main difference between the VCM and the DCF model? The VCM aims at finding the price of the shares bought by the

What is the main difference between the VCM and the DCF model?
The VCM aims at finding the price of the shares bought by the PE, whereas the DCF aims at finding the equity value.
The VCM aims at finding the IRR when the price setting is fundamental, whereas the DCF aims at finding the equity value.
The DCF aims at finding the number of shares bought by the PE, whereas the VCM aims at finding the VBC enterprise value.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!