scholarly journals Fuzzy logic, parity theories and two currencies valuation for emerging markets with de discount cash flow model

2019 ◽  
Vol 5 (1) ◽  
pp. 69-94
Author(s):  
G. S Milanesi
Keyword(s):  
Fuzzy Logic ◽  
Exchange Rates ◽  
Interest Rates ◽  
Cash Flow ◽  
Flow Model ◽  
Economic Systems ◽  
Fisher Effect ◽  
Discounted Cash Flow ◽  
Discount Cash Flow ◽  
Comprehensive Framework

The discount cash flow model must incorporate, in emerging economic systems, a conceptual framework for the inflation and valuation in two currencies treatment. The start point are the parity theories and Fisher effect, adding fuzzy logic for project uncertainty variables: interest rates, inflation, exchange rates and quantities, becoming one of its main contributions. The structure of the paper as follows: they are developed the parity theories and model´s equation at the fuzzy logic framework. Its functioning is illustrated with case of a firm located in an emerging and inflationary economy like Argentina, using spreadsheets. Finally, the results obtained showed the consistency with the parity theories, adding fuzzy logic for the uncertainty treatment, at the comprehensive framework of discounted cash flow model in two currencies.

Measuring Wildfire Impacts: Method and Case Study

1987 ◽  
Vol 11 (3) ◽  
pp. 143-147
Author(s):  
W. L. Mills ◽  
S. D. Shnitzler ◽  
R. S. Meldahl
Keyword(s):  
Economic Impact ◽  
Cash Flow ◽  
Flow Model ◽  
Growth And Yield ◽  
Timber Production ◽  
Discounted Cash Flow ◽  
The Impact ◽  
Data Requirements

Abstract A discounted cash flow model called the Impact Appraisal Model (IAM) computes the economic impact due to a change in timber production caused by a wildfire. Data requirements for the IAM can be obtained using standard inventory procedures to estimate the pre- and post-fire stand conditionsneeded to initiate a growth and yield simulator. The model is demonstrated using five loblolly plantations that burned in 1980 and 1981. South. J. Appl. For. 11(3):143-147.

scholarly journals Using the Discount Cash Flow Model in Preliminary Assessment for Gold Mine Projects

2020 ◽  
Vol 8 (6) ◽  
pp. 1935-1940
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Flow Model ◽  
Eastern Desert ◽  
Cost Data ◽  
Gold Mine ◽  
Present Value ◽  
Preliminary Assessment ◽  
Discount Cash Flow ◽  
Technical Factors

This study aims to the examination of the economic potential for the Abu Marawat Gold Project (AGP) in the Eastern Desert of Egypt and prediction the decision about go/not-to-go to invest in the deposit location. Discount Cash Flow (DCF) model used to calculate the Net Present Value (NPV) for the proposed gold mine project. NPV calculated by taking the risk and uncertainty produced from geological and technical factors into account. The actual production and cost data for Sukari Gold Mine (SGM) of Egypt used a benchmark for the theoretical calculation for production and cost data of AGP. From the valuation processes for AGP the NPV for the project predominantly positive, so, the project is acceptable to investment.

scholarly journals An Empirical Evidence of International Fisher Effect in Bangladesh with India and China: A Time-Series Approach

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Kazi Ashraful Alam ◽  
Anisuzzaman Shuvo
Keyword(s):  
Time Series ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Fisher Effect ◽  
Nominal Interest Rates ◽  
Trading Partners ◽  
Time Series Approach ◽  
The Relationship ◽  
Casual Relationship

This paper is an attempt to examine the empirical evidence of International Fisher Effect (IFE) between Bangladesh and its two other major trading partners, China and India. The IFE uses interest rate differentials to explain why exchange rates change over time. A time series approach is considered to trace the relationship between nominal interest rates and exchange rates in these countries. The estimated value, by applying OLS, is used to determine the casual relationship between interest rates and exchange rates for quarterly data from 4th Quarter, 1995 to the 2nd Quarter, 2008. The empirical results suggest that there is a little correlation between exchange rates and interest rates differential for Bangladesh with China and Bangladesh with India, and the relationship between the variables is also not noteworthy for Bangladesh. Further, the trends advocate that the forecasting of exchange rates with the hypothesis of IFE is not realistic for these countries.

Application of discounted cash flow model valuation: The case of Excide industries

2021 ◽  
Vol 8 (4) ◽  
pp. 170-179
Author(s):  
Ashok Panigrahi ◽  
Kushal Vachhani ◽  
Mohit Sisodia
Keyword(s):  
Sensitivity Analysis ◽  
Cash Flow ◽  
Flow Model ◽  
Cost Of Capital ◽  
Weighted Average ◽  
The Other ◽  
Discounted Cash Flow ◽  
Worst Case ◽  
Share Prices ◽  
Valuation Technique

Theoretical and practical features of the widely used discounted cash flow (DCF) valuation approach are examined in depth in this paper. This research evaluates Exide Industries by using the DCF Valuation technique. It is widely accepted that the discounted cash flow approach is an effective tool for analyzing the situation of an organization even in the most complicated circumstances. The DCF approach, on the other hand, is prone to huge assumption bias, and even little modifications in an analysis' underlying assumptions may substantially affect the valuation findings. As a result, of the sensitivity analysis, we discovered bullish, base, and worst-case scenarios with target share prices of Rs. 253.25, Rs. 171.37, and Rs.133.25, respectively, by adjusting growth and WACC (Weighted-Average Cost of Capital) values.

Assessment of irrigation dam using real options and discounted cash flow approaches: a case study in Greece

Water Policy ◽  
2009 ◽  
Vol 11 (4) ◽  
pp. 481-488 ◽  
Author(s):  
Anastasios Michailidis ◽  
Konstadinos Mattas ◽  
Diamantis Karamouzis
Keyword(s):  
Real Options ◽  
Cash Flow ◽  
Flow Analysis ◽  
Discounted Cash Flow ◽  
Northern Greece ◽  
Uncertainty Factors ◽  
The Real ◽  
Discount Cash Flow ◽  
Real Options Approach

This article extends the evaluation techniques of an irrigation dam in northern Greece, called “Petrenia”, by comparing the real options approach along with, a traditional one, the discount cash flow. By introducing first a Monte Carlo simulation, the various uncertainty factors can be simulated and alternative value options can be computed, feeding them later in the real options model. Results from the case study in Greece clearly demonstrate that the irrigation dam can be classified as a profitable investment, by applying traditional discount cash flow analysis, while by applying the real options approach the project cannot be classified as profitable. Taking into consideration the uncertainty factors, the real options approach reveals that the investment could be postponed and decision makers can keep the option of investing open. Sequentially, discount cash flow analysis accompanied by the real options approach facilitates decision making and improves the investment assessment analysis. In this particular project assessment, two uncertainty factors, variation in dam capacity and water price, restrict the profitability of the irrigation dam, according to the results of the real options approach.

Developing an Automated Discounted Cash Flow Model

2011 ◽  
pp. 108-134
Author(s):  
Robert J. Atra ◽  
Rawley Thomas
Keyword(s):  
Cash Flow ◽  
Flow Model ◽  
Discounted Cash Flow

How the Equity Terminal Value Influences the Value of the Firm?

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Alfonso A. Rojo-Ramírez ◽  
Maria J. Martínez-Romero ◽  
Teresa Mariño-Garrido
Keyword(s):  
Cash Flow ◽  
Flow Model ◽  
Intrinsic Value ◽  
Cash Flows ◽  
Common Stock ◽  
Present Value ◽  
Discounted Cash Flow ◽  
Valuation Model ◽  
The Impact ◽  
Future Cash Flows

AbstractThe discounted cash flow model (DCFM) views the intrinsic value of common stock as the present value of its expected future cash flows. This paper analyses whether the equity terminal value (EqTV) of the firm calculated by fundamentals is appreciated by the market. It also studies the impact of variations in EqTV and the extent to which the market perceives these variations. Using a sample of 62 Spanish listed companies, this paper shows that EqTV and its variations are positively and significantly correlated with EqTV assigned by the market and its corresponding variations. It therefore corroborates the validity and relevance of the valuation model.

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