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Spanish to English translations [PRO] Bus/Financial - Finance (general) | | Spanish term or phrase: descuento de flujos de caja con un coeficiente multiplicador | Not sure quite what they mean here. It's from a Spanish purchase agreement to buy all the shares of a Spanish plc.
"El precio de la totalidad de las Participaciones es de XXX euros. El Precio de las Participaciones ha sido calculado del siguiente modo: [en base a un valor de empresa de [X.XXX.XXX Euros] calculado mediante el descuento de flujos de caja con un coeficiente multiplicador y sin tener en cuenta la deuda financiera neta de la Sociedad] al cual se le ha restado el importe de XXX € correspondiente a la deuda financiera neta de la Sociedad [a esta fecha] declarada por los Vendedores de acuerdo con la Certificación mencionada en la Cláusula 5 (viii) del Contrato."
Does this mean that they arrived at this figure (value of the company ) by deducting the cash flow from a larger amount and using a multiplication coefficient (?)? I don't really get the "con" here. Using?
Any help appreciated! |
| Will GriffinKudoZ activityQuestions: 284 (none open) ( 5 without valid answers) ( 4 closed without grading) Answers: 50 Spain
| | Local time: 06:18
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| | discounted cash flows with a multiplying factor/coefficient | Explanation:
http://www.finance-glossary.com/terms/discounted-cashflow.ht...
A formula closely related to Net Present Value which springs from the idea that £1 received in ten years' time is not worth as much as £1 received now because the £1 received now could be invested for those ten years and compound into a higher value.
Discounted cashflow applies a discount rate to future cashflows to establish their present worth. Added to the company's terminal value (i.e. what you'd get if you sold its assets), this gives you a total value for the whole business.
Digging Into Buffett's Numbers [Fool.com: Commentary] May 11, 20052. Multiply the current year's FCF by the discount factor (calculation shown above). This gives the discounted present value of free cash flow for the year ...
www.fool.com/news/commentary/ 2005/commentary05051108.htm - 38k - Cached - Similar pages
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| Selected response from:
cielos Local time: 01:18
| Grading comment Thanks very much to all answerers! This one fits better. 4 KudoZ points were awarded for this answer |
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| Discussion entries: 0 |
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Automatic update in 00:
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8 mins confidence:   using or employing
Explanation: Thats what I think too, the Spanish original doesn't stylistically outstanding
-------------------------------------------------- Note added at 10 mins (2006-03-09 17:56:13 GMT) --------------------------------------------------
Sorry, doesn't "seem"....
| Matthew Smith Spain Local time: 07:18 Specializes in field Native speaker of: English PRO pts in category: 143
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