discounted future earnings method
Definition
Business appraisal approach in which estimates of the future earnings of the firm being sold, and the firm's terminal residual value, are discounted to the present value by using the rate of return (capitalization rate) desired by the prospective buyer.
Popular 'Accounting & Auditing' Terms
discounted future earnings method in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/discounted-future-earnings-method.html
