Application of value and structure of capital in enterprises applying the discounted cash flow (DNT) method

Abstract

Valuation of the value and structure of capital using the discounted cash flow (DNT) method is one of the safer and more valid methods used by the valuation team to evaluate the value of the capital. It essentially involves the application of capital appreciation through a yield method of calculation. The data obtained by applying this method are confidently presented in the results of the assessment team, which are submitted to the top management of the company. The aim of this paper is to show the advantages of applying the method of estimating the value of the capital of the company, because in comparison with other methods of valuation, this method is viewed as a unique entity for profit making. The authors conclude that the use of DNT reveals a link between the achieved business results of the enterprise as measured by the size of the profit and the expression of the enterprise value. The contribution of the study's authors is that they have discovered a link between the value of a business and its ability to fertilize borrowed capital and make a profit.