Valoración de empresas por descuento de flujos: lo fundamental y las complicaciones innecesarias.

Valoración de empresas por descuento de flujos: lo fundamental y las complicaciones innecesarias.

Abstract:

Company valuation using discounted cash flows is based on the valuation of the Government bonds: it consists of applying the procedure used to value the Government bonds to the debt and shares of a company. This is easy to understand. But company valuations are often complicated by ‘additions’ (formulae, concepts, theories…) to complicate its understanding and to provide a more “scientific”, “serious”, “intriguing”, “impenetrable”,… appearance. Among the most commonly used ‘additions’ are: WACC, beta (?), market risk premium, beta unlevered, value of tax shields… Most of these ‘additions’ are unnecessary complications and are the source of many errors.

Keywords: Valuation, discounted cash flow, equity premium, required equity premium, expected equity premium, beta, VTS