Figures that Matter in Cash Flows Forecast

This article has the objective to highlight the important aspects the appraisers should consider when forecasting cash flows and applying discounted cash flow analysis (DCF) for business valuation, such as: drivers to consider in cash flows forecast, selection of the DCF inputs via the analysis of historical financial statements and their adjustments that should be taken into consideration in cash flows forecast, analysis of the logical chain coherence between the inputs and outputs which are taken into account in cash flows forecast, drivers of the cash flows growth rate and estimation of the terminal value.