Jimenez, Luis Gonzalez; Pascual, Luis Blanco - In: The European Journal of Finance 16 (2010) 1, pp. 57-78
This paper proposes and tests a variant of the standard discounted cash-flow model for enterprise valuation. The cash-flow (C/F) stream to be discounted is projected as the product of the sales and the free C/F to the enterprise (FCFE)-to-sales ratio and their respective rates of change. The C/F...
