Abstract
The Financial Management Seminar required us to analyze the common errors in the DCF Model introduced by Mauboussin in his article titled, "Common Errors in DCF Model" in 2006.
The Discount Cash Flow Analysis is a model that allows investors making an analysis of the risks taken by investing in a specific project. It calculates the value of an asset from its future cash flows discounted by an appropriate rate. Mauboussin has found 8 common errors in this model, and the goal of this paper is to discuss his propositions and explain our point of view.
