Abstract

This brief Paper presents the jist of our views on the discounting principle and methodology as used within the area of Professional Valuation. Singled out for concise treatment are the following: 1) Relationship between the general DCF framework and different yield capitalization techniques- same or different thing? 2) DCF - a tool for forecasting fantasy or credible framework for relative terms of reference? 3) Discount rate as the opportunity cost of funds. 4) The nature of valuation risks and whether it is appropriate to incorporate all of them within a discount rate. 5) CAPM - is there any alternative and does it hold in the area of Professional Valuation?

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