Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2008
The Circularity Problem with Free Cash Flow
The Circularity Problem with Free Cash Flow
Page Range: 138 – 147
Abstract
This paper reviews the circularity problem with the free cash flow valuation method. It quantifies the problem via a numerical example and discusses potential solutions. It concludes that it is best solved via an iteration process.
Copyright: © 2008 American Society of Appraisers
Contributor Notes
James C. G. Turner, is a portfolio manager of UK equities with USS (Universities Superannuation scheme) Limited. Mr. Turner is located in London, United Kingdom and can be reached at jturner@uss.co.uk.