Question: When a discounted cash flow (DCF) model is used to estimate the intrinsic value of a company, many decisions are made. What are two weaknesses
When a discounted cash flow (DCF) model is used to estimate the intrinsic value of a company, many decisions are made. What are two weaknesses of the DCF model? Provide two examples of an attribute, asset, specialization, or value a company has that is not included in a discounted cash flow (DCF) model justifying a higher valuation?
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Two weaknesses of the DCF model are 1 Sensitivity to Assumptions The DCF model heavily relies on var... View full answer
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