Explore BrainMass

What are three key inputs to the valuation model?

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What are three key inputs to the valuation model? How would you determine the valuation of an asset? How would the intrinsic value differ from the market value? Explain your answer.

© BrainMass Inc. brainmass.com October 25, 2018, 1:48 am ad1c9bdddf

Solution Preview

Valuation is the process of finding the value of any financial assets. The three key inputs to a valuation model are - (i) the expected cash flows from the asset over the life of the asset, (ii) the timing of the cash flows and the (iii) the required return which is based on the risk level of the cash flows.

The value of any assets is the present value of the cash flows. We estimate what the cash flows would be over the life of the asset, we then estimate at what rate these cash flows should be discounted so as ...

Solution Summary

The solution explains the three key inputs to the valuation model in 385 words.

See Also This Related BrainMass Solution

Valuation Model

Make a recommendation as to which valuation model would serve best. Please see attached.

View Full Posting Details