Valuing‌‌ of cash flows in capital cash flow method and comparison it with free cash flow and adjusted present value methods in listed companies of Tehran stock exchange

Subject Areas : Management Accounting

Mohsen Dastgir ¹ (نویسنده مسئول و طرف مکاتبه)
Vali Khodadadi ² (ندارد)
Maryam Ghayed ³ (ندارد)

Received: 2009-11-11 Accepted : 2010-02-04 Published : 2009-12-22

Keywords: Capital cash flow, Free cash flow, Adjusted present value,

Abstract :

One of the methods for valuing companies is the use of discounted cash flows. In this paper, we introduce capital cash flow discounted by weighted average cost of capital after tax and compare with free cash flow discounted by weighted average cost of capital before tax. The sample data set used consists of 54 companies listed in stock exchange. Then, we collect their financial information during during 1383 to 1385 and for analysis, we apply T student statistic test.                                                                       The results show that by using suitable discounted rate, the calculated valuation by capital cash flow would equal with both of introduced methods.