Abstract

In the first of this pair of articles we set out the broad problems and components of time‐share (TS) valuation and talked in general terms of the use of DCF techniques that might more realistically incorporate the risks involved in TS from a purchaser's point of view. This second article includes a worked example using first an ‘optimistic single‐point best estimate DCF’ and then a DCF which incorporates a range of values for each of the main variables, using random selection, finally forming a distribution of the 500 valuations actually run.

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