Newport Beach, CA
United States
This presentation will describe and illustrate new approaches to valuation that are based on earnings-based models and forecasts readily available in most cases, rather than cash flow forecasts. We will start with an overview of how an earnings-based valuation is conceptually the same as the traditional discounted cash-flow approach. We will further review its potential advantages over the DCF approach, including data requirements, assumptions needed to be made for implementation, and ability to evaluate forecasts by breaking down the valuation into components of varying reliability. A simple spreadsheet implementation of the model will be used to show how to apply the methodology to the valuation of utilities, pipelines, E&P companies, and other firms. The presentation will also review other current hot-button issues in valuation.
