most critical input of the Discounted Cash Flow
model is the cash flow projections. As stated earlier, the Discounted
Cash Flow value is as good ... stable growth rate of cash flows. Terminal value is derived
mathematically by dividing the perpetuity cash flows (cash flows
which are expected to grow
asked the assessee to file supporting evidence with regard to "Discounted
cash flow" method adopted to value shares, vide order sheet entry dated ... erred in accepting the "Discounted cash flow" method for
valuation of share, without any empirical basis to support the same
Discounted Cash Flow 125,738.93 104,821.69 102,217.93 86,449.33 72,376.66 403,421.69
Sum of cash Flows 895,026.23
Add: Cash ... Discounting rate 14.50%
Period of discount 1 2 3 4
Discounting factor 1.00 0.87 0.76 0.67 0.58
Discounted cash flow
unquoted equity shares by
the merchant banker or as per discounted cash flow method. He
held in so far as DCF method is concerned ... Mail Today as on 20.07.2012,
wherein, the valuer applied Discounted Cash Flow Method in
order to value the shares of M/s Mail Today
share comes to Rs.364/- and on the basis of the
discounted cash flow method comes to Rs.310.77 per
share.
The value ... methods viz., Net Asset Value (NAV), Earnings
Per Share (EPS) and Discounted Cash Flow (DCF) method. That as per
NAV method, the value
Chartered
Accountants which was based on discounted cash flow method as per rule
11 UA of the IT Rules, 1962. Hence, the Assessing Officer ... Chartered Accountant valuing the shares of
the assessee as per discounted cash flow method and therefore the
Assessing Officer should have accepted the same
erred in considering the
Discount Cash Flow Method for valuation of shares as
correct. Which were based upon the hypothetical data
and never been materialized ... that ld CIT (A) had fail in error in considering
the Discount Cash Flow Method for valuation of shares as
correct, which were based upon
perceived discounted cash flow (DCF) as an appropriate
method of valuation and referred and computed the cash flow
for 5 years and discounted ... Further, the learned AR emphasized that value of DCF
i.e. discounted cash flow method is inclusive of control
premium and referred to the method
7505/Del/2018
without understanding the valuation method prescribed viz Discounted Cash
Flow(DCF) method.
3. The CIT(A) has erred ... discount rate of 15%. The growth rate has been added to the capitalization rate
to arrive at the discount rate for the future cash flows
Addl. Cit, Special Range- 1 , New Delhi vs Aricent Technologies (Holdings) Ltd., ... on 29 November
