ValuePro Approach

The ValuePro approach uses a discounted cash flow (DCF) technique to value common stock.  DCF techniques are used by investment bankers for merger and acquisition analysis, Wall Street traders to value all types of debt obligations, and Wall Street analysts to value stock.

The value of any asset is equal to the expected cash flows of the asset, discounted for timing and risk. Future cash flows for common stock can come from dividends, from the sale or merger of the company (e.g. AOL's merger with Time Warner), from the repurchase of the stock by the company (e.g. Microsoft and Intel have large share repurchase programs), or from the sale of the stock at market prices.

Select from the menu at left for a description of the DCF valuation approach or the ValuePro program.