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The Problems of the Traditional Deterministic DCF A deterministic⁽¹⁾ DCF uses deterministic forecasts which are driven by only one scenario of variables. Valuators normally analyse forecasts using three scenarios: optimist, pessimist, and mean or they use sensitivity analysis. However, such approaches do not work with multiple variables that change in time. Additionally, deterministic forecasts and valuations  […]

The problem with Static DCF and Discount Rates Discount Rates Include: -Risk Free -Market/systematic risks (beta and risk premium) -Time value of money -DLOM -Size Is that enough for this case? Discount Rate Adjustment Technique The problem The single and base scenario assumes success with expected revenues, so it is conditional with no probabilistic assessment.

In traditional valuation processes, risk assessment and attention has historically focused more than half its time on legal, compliance , and financial reporting functions. However, most big hits come from market, macro economic, strategic and operation risks.

BVint’s ADVANCED VALUATION MODELS AND  APPROACH Our Approach: Advanced Valuations with stochastic risk assessments based on macro economy, market, strategy, technology, operative and financial drivers Identify both external and internal risk-value drivers and assess them using advanced probabilistic analysis. Risk-value variables are subject to volatility driven by both history and strategic studies. Using Risk Palisade