Bridge over ocean
1 March 2000 Financial Analysts Journal Volume 56, Issue 2

Finding Firm Value without a Pro Forma Analysis (corrected)

  1. Tom Arnold
  2. Jerry James

We present a firm value calculator (FVC) that uses applications of growth-annuity and growth-perpetuity equations. The FVC provides the same detailed analysis of firm value as the more complicated pro forma analysis and can thus replace a pro forma analysis or be used to check or correct it. The FVC can be easily implemented—through either a computer spreadsheet or a handheld calculator. The algorithmic nature of the FVC may also be implemented through computer programming to quickly produce a large number of analyses, which can save a practitioner a great deal of time when many companies are to be analyzed or compared.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content

We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.