Article ID: | iaor1995841 |
Country: | United Kingdom |
Volume: | 22 |
Issue: | 3 |
Start Page Number: | 221 |
End Page Number: | 235 |
Publication Date: | May 1994 |
Journal: | OMEGA |
Authors: | Singer A.E. |
Keywords: | financial |
DCF models are very widely used despite the impossibility of forecasting cashflows. However, the traditional DCF methodology could be adapted, so that it becomes nothing more than a device for evoking knowledge and improving conceptual models, leading to the formulation of investment intentions. In secondary asset-selection contexts, DCF calculations could facilitate sub-optimization. These adaptations find theoretical support in pragmatism and meta-theory.