Multi-Stage Growth Method

The Multi-Stage Growth Method projects the business's economic benefit stream for one to ten years and discounts the future cash flows back to a present value. A discounted cash flow (DCF) approach to valuation is applicable when:

bAn income approach has been determined to be the appropriate course of valuation; and

bThe business's short-term cash flows are expected to differ from the anticipated long-term cash flows.

Folder and Worksheets

The worksheets for the Multi-Stage Growth Method are in the Appraisal \ Income Approach \ Multi-Stage Growth folder.

bAssumptions

bBenefit Stream

bProjection Method

bDiscount Rate

bIndicated Value

bRate Sensitivity