The models can be adjusted for the natural business environment of a company or/and for a special kind of feasibility studies. They can be used for different types of advanced valuation and help the company feel more comfortable and trusted with its estimations.
Examples of estimations that are possible to calculate with these models:
- future performance and valuation for company’s entities,
- future growth of the NOPAT (based on a long period forecasting),
- future cash flows (inflow & outflow),
- shareholder value added,
- projections with increased Equity & Debt.
They are useful for main valuation and performance estimation of a company (resulting from the long-term forecasting period) and all can be calculated for a long period and the forecast can be extended over 15-, 25-, 30- and more year horizon.
There are many companies that do not feel at ease with estimating the terminal value (based on the NOPAT continued growth rate) due to the error margin while estimating possible ‘G’. It is a case, for instance, with estimating the invisible cash flow based on the continuing NOPAT and the terminal year t+1.
With these 5 MODERN MODELS you can finally feel comfortable while undergoing valuation and estimating the value added of your company !