Discounted Free Cash flow method...UrgentSir!!!

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Rajesh (Querist)
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24 July 2010 Dear Experts,
Can anyone explain me about Discounted Free Cash flow method for valuation of shares for a closely held company.
With regards,
Rajesh

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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31 July 2010 Dear Rajesh,
Determine the period of holding.
Project the dividends for the period of holding.
Determine the value at the end of the period by using EPS X PE factor (better)
Discount all these values back
You will have to reduce the value that you got by some percentage to account for lack of control / marketability, etc
Hope this answers your query. Let me know, if not.