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David Oldroyd - One of the best experts on this subject based on the ideXlab platform.

  • THE EMERGENCE OF Discounted Cash Flow ANALYSIS IN THE TYNESIDE COAL INDUSTRY c.1700–1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

  • the emergence of Discounted Cash Flow analysis in the tyneside coal industry c 1700 1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

Susie Brackenborough - One of the best experts on this subject based on the ideXlab platform.

  • THE EMERGENCE OF Discounted Cash Flow ANALYSIS IN THE TYNESIDE COAL INDUSTRY c.1700–1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

  • the emergence of Discounted Cash Flow analysis in the tyneside coal industry c 1700 1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

Tom Mclean - One of the best experts on this subject based on the ideXlab platform.

  • THE EMERGENCE OF Discounted Cash Flow ANALYSIS IN THE TYNESIDE COAL INDUSTRY c.1700–1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

  • the emergence of Discounted Cash Flow analysis in the tyneside coal industry c 1700 1820
    British Accounting Review, 2001
    Co-Authors: Susie Brackenborough, Tom Mclean, David Oldroyd
    Abstract:

    Abstract The paper examines the origins of Discounted Cash Flow analysis (DCF) in the Tyneside coal industry and explains its sudden adoption around 1801. It finds that a complex series of circumstances were involved, but that in terms of the catalysts, the prime motivation was economic. DCF was a specific wealth-maximization response to the economic conditions of the day. Second, there is the question of the utility of accounting in the British Industrial Revolution which has been variously denigrated or rehabilitated by researchers. The adoption of DCF is a clear case of accounting and engineering technologies combining to facilitate the exploitation of deep coal reserves, where accounting acted as a determinant of industrial expansion. Finally, the paper finds that the DCF valuation method of the early viewers (mining engineers/managers) was still being applied in the British coal industry in the modern era, suggesting that for one major industry at least, the absorption of DCF within the domain of modern accounting practice was primarily a question of tradition and not just an educational innovation of the 1960s.

Pablo Fernandez - One of the best experts on this subject based on the ideXlab platform.

  • Financial literature about Discounted Cash Flow valuation
    2005
    Co-Authors: Pablo Fernandez
    Abstract:

    There is a wealth of literature about Discounted Cash Flow valuation. In this paper, we will discuss the most important papers, highlighting those that propose different expressions for the value of the tax shield (VTS). The discrepancies between the various theories on the valuation of a company's equity using Discounted Cash Flows originate in the calculation of the value of the tax shield (VTS). This paper illustrates and analyzes 7 different theories and presents a new interpretation of the theories.

  • Discounted Cash Flow VALUATION METHODS: EXAMPLES OF PERPETUITIES, CONSTANT GROWTH AND GENERAL CASE
    SSRN Electronic Journal, 2004
    Co-Authors: Pablo Fernandez
    Abstract:

    This paper explores the Discounted Cash Flow valuation methods. We start the paper with the simplest case: no-growth, perpetual-life companies. Then we will study the continuous growth case and, finally, the general case. The different concepts of Cash Flow used in company valuation are defined: equity Cash Flow (ECF), free Cash Flow (FCF), and capital Cash Flow (CCF). Then the appropriate discount rate is determined for each Cash Flow depending on the valuation method used. Our starting point will be the principle by which the value of a company's equity is the same, whichever of the four traditional Discounted Cash Flow formulae is used. This is logical: given the same expected Cash Flows, it would not be reasonable for the equity's value to depend on the valuation method.

  • Three Residual Income Valuation Methods and Discounted Cash Flow Valuation
    SSRN Electronic Journal, 2002
    Co-Authors: Pablo Fernandez
    Abstract:

    In this paper we show that the three residual Income models for equity valuation always yield the same value as the Discounted Cash Flow Valuation models. We use three residual income measures: Economic Profit, Economic Value Added (EVA) and Cash Value Added. We also show that economic profit and EVA are different, although Copeland, Koller and Murrin (2000, page 55) say that economic profit is a synonym of EVA. Specifically, we first show that the present value of the Economic Profit Discounted at the required return to equity plus the equity book value equals the value of equity. The value of equity is the present value of the Equity Cash Flow Discounted at the required return to equity. Then, we show that the present value of the EVA Discounted at the WACC plus the enterprise book value (equity plus debt) is the enterprise market value. The enterprise market value is the present value of the Free Cash Flow Discounted at the WACC. Then, we show that the present value of the Cash Value Added Discounted at the WACC plus the enterprise book value (equity plus debt) is the enterprise market value. The enterprise market value is the present value of the Free Cash Flow Discounted at the WACC.

  • Discounted Cash Flow Valuation Methods: Perpetuities, Constant Growth, and General Case
    Valuation Methods and Shareholder Value Creation, 2002
    Co-Authors: Pablo Fernandez
    Abstract:

    This chapter discusses Discounted Cash Flow valuation methods. The chapter also discusses several concepts of Cash Flow that are used in the company valuation such as equity Cash Flow, free Cash Flow (FCF), and capital Cash Flow. The Cash Flows generated by the company are perpetual and constant (without growth). It is accepted that the company's total value (debt, equity, and tax) is independent of leverage—that is, there are no leverage-generated costs (there is no reduction in the expected FCF or any increase in the company's risk). The chapter tabulates the valuation of six different companies without growth. These companies differ in the tax rate, cost of debt, and size of the debt. There are four formulas for company valuation using Discounted Cash Flows for a general case. The Cash Flows generated by the company may grow at a different rate each year, and thus all of the company's parameters can vary from year to year.

Nick French - One of the best experts on this subject based on the ideXlab platform.

  • the Discounted Cash Flow model for property valuations quarterly in advance Cash Flows
    Journal of Property Investment & Finance, 2013
    Co-Authors: Nick French
    Abstract:

    Purpose – There are three approaches to valuation: cost, market and income. As a subset to the income approach, the investment method looks at the pricing of assets that produce income over an investment holding period. The Discounted Cash Flow (DCF) technique or model can be developed to look at the Cash Flows on a quarterly basis to reflect the actual receipt of the Cash Flows. This Education Briefing is a overview of the DCF quarterly model and the need to analyse comparables appropriately. The paper aims to discuss these issue.Design/methodology/approach – The DCF quarterly model can be seen to produce estimates of market value.Findings – As the use of DCF is developed and expanded, it is useful to be able to model the Cash Flows appropriately.Practical implications – The old adage “value as you analyse” applies to DCF valuations. If valuing quarterly, then the analysis needs to be done on the same basis.Originality/value – This briefing is an overview of the pricing of freehold rack rented properties...

  • The Discounted Cash Flow model for property valuations: quarterly Cash Flows
    Journal of Property Investment & Finance, 2013
    Co-Authors: Nick French
    Abstract:

    Purpose – There are three approaches to valuation: cost, market and income. As a subset to the income approach, the investment method looks at the pricing of assets that produce income over an investment holding period. The Discounted Cash Flow (DCF) technique or model can be developed to look at the Cash Flows on a quarterly basis to reflect the actual receipt of the Cash Flows. The aim of this paper is to give an overview of the DCF quarterly model.Design/methodology/approach – This education briefing is an overview of the DCF quarterly model.Findings – The DCF quarterly model can be seen to produce estimates of market value.Practical implications – As the use of DCF is developed and expanded, it is useful to be able to model the Cash Flows appropriately.Originality/value – This is a review of existing models.

  • Discounted Cash Flow: accounting for uncertainty
    Journal of Property Investment & Finance, 2005
    Co-Authors: Nick French, Laura Gabrielli
    Abstract:

    Purpose – Valuation is the process of estimating price. The methods used to determine value attempt to model the thought processes of the market and thus estimate price by reference to observed historic data. This information is utilised in the Discounted Cash Flow (DCF) valuation model to determine the single point valuation figure. However, the valuation will be affected by uncertainties: uncertainty in the comparable data available; uncertainty in the current and future market conditions and uncertainty in the specific inputs for the subject property. These input uncertainties will translate into an uncertainty with the output figure, the estimate of price. This paper discusses ways in which uncertainty can be incorporated into the DCF model.Design/methodology/approach – This paper looks at the way in which uncertainty can be incorporated into the explicit DCF model. This is done by recognising that the input variables are uncertain and will have a probability distribution pertaining to each of them. T...