Matches in SemOpenAlex for { <https://semopenalex.org/work/W4289840954> ?p ?o ?g. }
Showing items 1 to 73 of
73
with 100 items per page.
- W4289840954 endingPage "64" @default.
- W4289840954 startingPage "39" @default.
- W4289840954 abstract "Abstract The discounted cash flow (“DCF”) model is widely used for valuing corporate assets. But valuable assets that do not generate cash flows will be missed by the DCF approach. Because cash interest income is generally not included in the projected net cash flows of operating assets, the value of cash is regarded as a non-operating asset whose value must be added to the DCF enterprise value. Unfortunately, it has become standard practice on Wall Street and for the courts to exclude some amount of cash from non-operating assets on the basis that it will be used to finance the immediate operations of the business. The exclusion of so-called “operating” or “working-capital” cash is widely accepted as necessary and is recommended in virtually all valuation texts and treatises. We disagree and show that all cash should generally be added as a non-operating asset, except in unique circumstances where “wasting cash” is not earning a fair market return. We explain that excluding operating cash is correct only if either the interest income on cash is included in the net cash flows projections used to compute DCF value, or if the specific (near-term) operating expenses that will be covered by operating cash are excluded from the net cash flow projections. In either case, the full economic benefits of owning operating cash are fully reflected in the DCF enterprise value of the company, causing the DCF value to be higher by the exact amount of operating cash that is excluded. We call this the symmetry principle of operating cash. In practice, neither condition is normally met, so that all cash should generally be treated as a non-operating asset." @default.
- W4289840954 created "2022-08-05" @default.
- W4289840954 creator A5026825798 @default.
- W4289840954 creator A5061319215 @default.
- W4289840954 date "2022-02-01" @default.
- W4289840954 modified "2023-09-29" @default.
- W4289840954 title "The Proper Treatment of Cash Holdings in DCF Valuation Theory and Practice" @default.
- W4289840954 cites W3121720731 @default.
- W4289840954 cites W3124317558 @default.
- W4289840954 cites W595355362 @default.
- W4289840954 doi "https://doi.org/10.1515/jbvela-2022-0009" @default.
- W4289840954 hasPublicationYear "2022" @default.
- W4289840954 type Work @default.
- W4289840954 citedByCount "0" @default.
- W4289840954 crossrefType "journal-article" @default.
- W4289840954 hasAuthorship W4289840954A5026825798 @default.
- W4289840954 hasAuthorship W4289840954A5061319215 @default.
- W4289840954 hasConcept C10138342 @default.
- W4289840954 hasConcept C128044525 @default.
- W4289840954 hasConcept C138885662 @default.
- W4289840954 hasConcept C144133560 @default.
- W4289840954 hasConcept C162324750 @default.
- W4289840954 hasConcept C163428354 @default.
- W4289840954 hasConcept C166819830 @default.
- W4289840954 hasConcept C175444787 @default.
- W4289840954 hasConcept C181230689 @default.
- W4289840954 hasConcept C184454666 @default.
- W4289840954 hasConcept C186027771 @default.
- W4289840954 hasConcept C195711298 @default.
- W4289840954 hasConcept C207972119 @default.
- W4289840954 hasConcept C2778348673 @default.
- W4289840954 hasConcept C47096860 @default.
- W4289840954 hasConcept C76087492 @default.
- W4289840954 hasConcept C95124753 @default.
- W4289840954 hasConcept C97366136 @default.
- W4289840954 hasConceptScore W4289840954C10138342 @default.
- W4289840954 hasConceptScore W4289840954C128044525 @default.
- W4289840954 hasConceptScore W4289840954C138885662 @default.
- W4289840954 hasConceptScore W4289840954C144133560 @default.
- W4289840954 hasConceptScore W4289840954C162324750 @default.
- W4289840954 hasConceptScore W4289840954C163428354 @default.
- W4289840954 hasConceptScore W4289840954C166819830 @default.
- W4289840954 hasConceptScore W4289840954C175444787 @default.
- W4289840954 hasConceptScore W4289840954C181230689 @default.
- W4289840954 hasConceptScore W4289840954C184454666 @default.
- W4289840954 hasConceptScore W4289840954C186027771 @default.
- W4289840954 hasConceptScore W4289840954C195711298 @default.
- W4289840954 hasConceptScore W4289840954C207972119 @default.
- W4289840954 hasConceptScore W4289840954C2778348673 @default.
- W4289840954 hasConceptScore W4289840954C47096860 @default.
- W4289840954 hasConceptScore W4289840954C76087492 @default.
- W4289840954 hasConceptScore W4289840954C95124753 @default.
- W4289840954 hasConceptScore W4289840954C97366136 @default.
- W4289840954 hasIssue "1" @default.
- W4289840954 hasLocation W42898409541 @default.
- W4289840954 hasOpenAccess W4289840954 @default.
- W4289840954 hasPrimaryLocation W42898409541 @default.
- W4289840954 hasRelatedWork W1953173110 @default.
- W4289840954 hasRelatedWork W2124042262 @default.
- W4289840954 hasRelatedWork W2172888626 @default.
- W4289840954 hasRelatedWork W2600147044 @default.
- W4289840954 hasRelatedWork W3125071820 @default.
- W4289840954 hasRelatedWork W3174690829 @default.
- W4289840954 hasRelatedWork W40189091 @default.
- W4289840954 hasRelatedWork W4249832490 @default.
- W4289840954 hasRelatedWork W4289840954 @default.
- W4289840954 hasRelatedWork W3125961193 @default.
- W4289840954 hasVolume "17" @default.
- W4289840954 isParatext "false" @default.
- W4289840954 isRetracted "false" @default.
- W4289840954 workType "article" @default.