Hi folks,
Why cant the capitalized cash flow method be used for public companies, but rather only for private companies?
Capitalized cash flow method（CCM） is a way to value an established company which is expected to have a consistent growth rate and positive cash flows.Obviously, it is suitable for publicly-traded Mature company with the same characteristics.It is not a problem for public companies or private companies，but just a common practice…
You can. It’s called the Single-Stage FCFF/FCFE model in the Free Cash Flow reading.