Discounted cash flow is one of the valuation methods of performance used by a company to pick on a favorable and attractive investment opportunity (Baker and Powell 105). This evaluation analysis method uses future cash flows that are to be discounted to find the estimated present value of the project’s potential to invest. Business evaluation entails a well laid out set procedures employed in the estimation of the owner’s interest economic value in business. Financial market participants use business valuation to arrive at the price they are willing to receive or pay out for the sale of an enterprise. I have applied the above concepts in various cases in my previous positions. In my position at SELENE FINANCE, Houston, TX in 2015, I was tasked with the duty of revenue forecasting, budgeting and reconciling forecasted accounts, among other duties. Revenue forecasting involves developing proforma financial statements. I used the current and past data to obtain accurate forecasts of revenues and balances of accounts. I also considered other assumptions such as the expected changes in operating conditions in revenue forecasting. I also applied these concepts as a senior financial analyst at GENERAL ELECTRIC/CBRE, Houston, TX and C-III CAPITAL PARTNERS, Irving, TX.
I have also applied the concepts of discounted cash flow as well as business valuation during my time at JANUS CAPITAL GROUP, Denver, CO. I worked as a portfolio accountant with a duty to review and update trades and dividends for several mutual funds. Discounted cash flow technique helped in determining the value of dividend streams for a mutual fund thus assisting in the valuation of the shares held by the mutual funds.
In my job as a financial analyst at GENERAL ELECTRIC/CBRE, Houston, TX and C-III CAPITAL PARTNERS, Irving, TX, I managed weekly capital forecasts and identified priority projects. This involved the valuation of capital projects based on the capital and revenue forecasts and using the discounted cash flow method. I also used business valuation techniques to assess the viability of businesses and projects.
Works cited
Baker, H. Kent and Gary E Powell. Understanding Financial Management: A Practical Guide.
Malden, MA: John Wiley & Sons, 2009. Print.
Works cited
