Harvard Business Review

NOVEMBER 5, 2013

When making big decisions, executives use familiar tools like discounted cash flow analysis far too often. For much more, including details on the decision-support tools outlined in this video, read ” Deciding How to Decide ,” by Hugh Courtney, Dan Lovallo, and Carmina Clarke.

Discounted Cash Flow 9

Discounted Cash Flow Discount Tools Video 9

Harvard Business Review

OCTOBER 16, 2013

Most companies – including the movie studios in Hollywood – over-rely on basic tools like discounted cash flow and net present value. How to Minimize Your Biases When Making Decisions. But it is possible to significantly improve your odds by understanding which decision-support tools work best for which decisions.

Discounted Cash Flow 8

Discounted Cash Flow Net Present Value Comparison Tools 8

Harvard Business Review

MARCH 10, 2011

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

JUNE 8, 2018

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Investors are paying more attention to ideas and options than to earnings.

Report 8

Report GAAP Net Present Value CFO 8