What did that do to
my expected cash flow stream?
Even then, the modeler has
an expected cash flow stream.
Typically your real estate software will employ an industry - standard discounted cash flow (DCF) methodology to project and then discount future
expected cash flow streams to their nominal value in today's dollars.
Not exact matches
The higher the price an investor pays for that
expected stream of
cash flows today, the lower the return that an investor should
expect over the long - term.
Over the years, I've emphasized what I call the Iron Law of Valuation: the every security is a claim on an
expected stream of future
cash flows, and given that
expected stream of future
cash flows, the current price of the security moves opposite to the
expected future return on that security.
This follows from the Iron Law of Valuation — the higher the price an investor pays for a given
stream of
expected future
cash flows, the lower the long - term return one should
expect.
The way you (properly) value a business is to weigh the price against the long - term
stream of
cash flows that you
expect that business to deliver into your hands over time.
The higher the price an investor pays for a given
stream of future
cash flows, the lower the long - term return an investor can
expect.
Yes, if you have a
stream of future
expected cash flows and need to estimate a fair price, interest rates should inform your choice of an appropriate discount rate.
Over the medium and long term, we
expect higher margin service revenues to boost profitability and create a large, steady
stream of
cash flow.
With a stable and predictable revenue
stream (more than 95 % of
cash flows secured under long - term contract or similar arrangements), Enbridge
expects to offer an attractive annual dividend growth rate of 10 % through 2020.
Furthermore, even if book sales were to decline, it is our belief that the discounted value of the future
stream of
cash flows that BKS could
expect to generate, otherwise known as its intrinsic value, would far exceed the current enterprise value of the Company.
When valuations are reasonable, investors can
expect satisfactory long - term returns simply on the basis of the
stream of
cash flows they receive over time.
However, even though defined benefits are expressed as monthly income, they have a present value, which is simply the
stream of their
expected future
cash flows expressed as a discounted lump sum.
Listing the milestones and taking a totally uninformed stab at the dates at which the milestones might be reached and assigning a probability to the achievement of each milestone, we can come up with an
expected nominal
cash flow stream (see Table 1 below).
We
expect that the investments in our new products will result in continued negative
cash flows from operations until such time that we experience a resurgence of demand for our legacy products closer to their historical levels or our new products gain traction in the market and begin to generate meaningful revenue
streams.
The actuarial present value (APV) is the
expected value of the present value of a contingent
cash flow stream (i.e. a series of payments which may or may not be made).