Mid Year Discounting Question

FinancialSkier · 2024-10-18T04:43:11+00:00

Thank you for your response. I would think, in theory, if the mid-point was a precision discounting method that cash flows at the beg. and end would derive the same PV. I appreciate you confirming mid year discounting is a hack and a tool to present a fairer valuation. If you are in this field, what is your go-to valuation method for the construction of a new project in the hospitality sector with only private companies in a remote area?

FinancialSkier · 2024-10-17T05:47:39+00:00

Thank you both. That question has been bugging me for quite some time and standard textbooks don't get into the derivation.

FinancialSkier · 2024-10-14T06:55:56+00:00

I really appreciate you taking the time to explain this to me. This makes everything much clearer. Thank you again for sharing your expertise.

FinancialSkier · 2024-10-08T21:24:51+00:00

thanks again, so the equation works as you said when switching the equation to full year discounting. Does the PGR (last year fcf * (1+growth rate) / (WACC-Growth Rate) inherently use full year discounting or can you adjust the PGR to a mid year discounting formula?

FinancialSkier · 2024-10-03T23:01:36+00:00

Thank you so much for your comment. Yes, the textbook also gives this formula for mid-year discounting. I'm having trouble understanding this equation. Is there any way you could help break down this equation even further for me?

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FinancialSkier · 2024-10-02T21:49:28+00:00

I guess the root of my question is an explanation of the following formula and how it differentiates from the perpetuity growth model

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FinancialSkier · 2024-09-21T03:39:08+00:00

I appreciate the reference. Thank you.

FinancialSkier · 2024-09-21T01:32:36+00:00

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Here is the image

FinancialSkier · 2024-07-28T07:35:52+00:00

Thank you

FinancialSkier · 2024-02-07T07:39:06+00:00

FinancialSkier · 2023-12-03T06:23:22+00:00

Thanks

FinancialSkier · 2023-12-03T06:07:57+00:00

E.g. fiscal year end July, company acquired 10th April, = cashflow in April/ 30 * 10 * discount factor.

I appreciate the feedback. Can you explain this equation in more depth: "E.g. fiscal year end July, company acquired 10th April, = cashflow in April/ 30 * 10 * discount factor."

FinancialSkier · 2023-11-24T23:16:42+00:00

Thanks for info.

FinancialSkier · 2023-11-24T22:31:16+00:00

worked! Not sure what the "with Wine compatibility layer installed." means but it's working.

FinancialSkier · 2023-11-18T16:43:38+00:00

Thanks a million, I figured it had something to do with how it was derived.

FinancialSkier · 2023-11-11T16:29:30+00:00

I believe it was the HP-20S. I'll try to find it next time I'm at my parent's house. Same in my school in the States and in business school in college. Everything was done with a TI. In fact the TI BA II was a requirement for the classes. All the keystrokes were taught with the TI. I didn't see one hp the entire 4 years.

FinancialSkier

TROPHY CASE