Application of discounted cash flow model valuation: The case of Exide industries


Article PDF :

Veiw Full Text PDF

Article type :

Original Article

Author :

Ashok Panigrahi, Kushal Vachhani, Mohit Sisodia

Volume :

8

Issue :

4

Abstract :

Theoretical and practical features of the widely used discounted cash flow (DCF) valuation approach are examined in depth in this paper. This research evaluates Exide Industries by using the DCF Valuation technique. It is widely accepted that the discounted cash flow approach is an effective tool for analyzing the situation of an organization even in the most complicated circumstances. The DCF approach, on the other hand, is prone to huge assumption bias, and even little modifications in an analysis' underlying assumptions may substantially affect the valuation findings. As a result, of the sensitivity analysis, we discovered bullish, base, and worst-case scenarios with target share prices of Rs. 253.25, Rs. 171.37, and Rs.133.25, respectively, by adjusting growth and WACC (Weighted-Average Cost of Capital) values.

Keyword :

DCF, Stock Valuation, Exide Industries, WACC, Cash Flow, Battery Industry
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