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cash-flows explicites

English translation: for info - forecast related?

20:49 Nov 21, 2006
French to English translations [PRO]
Bus/Financial - Finance (general) / Assessment of value of a company
French term or phrase: cash-flows explicites
"__ Actualisation de la valeur terminale réalisée au même taux que l’actualisation
des cash-flows explicites.
= 5.966 x (1 + 7,71%)-3
= 4.774"
Conor McAuley
France
Local time: 15:20
English translation:for info - forecast related?
Explanation:
I keep finding it in relation to forecasts:

The value of the company as you know from the valuation notes is the present value of the asset cash flows. Therefore, you compute the present value of the cash flows in the explicit forecast period of 7 years. There is also cash flow after the forecast period. You treat that as a growing perpetuity. You assume that the growth rate (in cash flows) is going to be the average of the growth rate in asset cash flows in the forecast period of 7 years or 4.66%. This is not the same as the growth rate in sales. (A different growth rate than the average of the past growth rates may be more appropriate in other cases). The cash flow growth rate has to be less than the discount rate, or you violate the second law of thermodynamics (your physics nightmare returns!)

http://www.georgetown.edu/faculty/siddiqua/project.htm

same link:

Using 9.01% discount rate, the present value of the cash flows in the explicit period is $79,172 and after the forecast period is $502,130 (using the growing perpetuity formula with 4.66% growth rate in cash flows.)

***

Horizon explicite (pour plus de détail voir page 843)

L'horizon explicite dans le cadre d'un business plan est l'horizon des prévisions détaillées de l'évolution de l'activité. Il dépendra de la visibilité de l'entreprise. Sa durée doit donc représenter le temps durant lequel l'entreprise se développera dans la continuité de ses décisions actuelles.
Equivalent anglais : Explicit forecast period

http://www.vernimmen.net/html/glossaire/definition_horizon_e...

taking a guess, cash-flows for an explicit period?? or cash-flows for an explicit forecast period?

--------------------------------------------------
Note added at 1 hr (2006-11-21 22:14:34 GMT)
--------------------------------------------------

the forecast elements ties in with your ACTU after all...

--------------------------------------------------
Note added at 1 hr (2006-11-21 22:18:04 GMT)
--------------------------------------------------

explicit period cashflows

Explicit Period Valuation

Forecast period valuation
Length of projection period
Calculating explicit period cashflows – use of FADE
Sense check techniques
Valuation of explicit period cashflows

http://www.efinancialnews.com/events/training/module4cashflo...

Explicit forecast period (See Chapter 40 of the Vernimmen)

The explicit forecast period is a period of projecting cash flows when the company is valued by the discounted cash flow model.

http://www.vernimmen.com/html/glossaire/definition_explicit_...
Selected response from:

juliebarba
United Kingdom
Local time: 14:20
Grading comment
Yes, company valuation-related. Thanks to all.
4 KudoZ points were awarded for this answer



Summary of answers provided
2 +1for info - forecast related?
juliebarba
2explicit cash flows
Lara Hill-Gentile (X)


  

Answers


15 mins   confidence: Answerer confidence 2/5Answerer confidence 2/5
explicit cash flows


Explanation:
I don't know what it is, unfortunately, but there are quite a few examples on google in financial texts.
good luck!

Lara Hill-Gentile (X)
Belgium
Local time: 15:20
Works in field
Native speaker of: Native in EnglishEnglish, Native in FrenchFrench
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 2/5Answerer confidence 2/5 peer agreement (net): +1
for info - forecast related?


Explanation:
I keep finding it in relation to forecasts:

The value of the company as you know from the valuation notes is the present value of the asset cash flows. Therefore, you compute the present value of the cash flows in the explicit forecast period of 7 years. There is also cash flow after the forecast period. You treat that as a growing perpetuity. You assume that the growth rate (in cash flows) is going to be the average of the growth rate in asset cash flows in the forecast period of 7 years or 4.66%. This is not the same as the growth rate in sales. (A different growth rate than the average of the past growth rates may be more appropriate in other cases). The cash flow growth rate has to be less than the discount rate, or you violate the second law of thermodynamics (your physics nightmare returns!)

http://www.georgetown.edu/faculty/siddiqua/project.htm

same link:

Using 9.01% discount rate, the present value of the cash flows in the explicit period is $79,172 and after the forecast period is $502,130 (using the growing perpetuity formula with 4.66% growth rate in cash flows.)

***

Horizon explicite (pour plus de détail voir page 843)

L'horizon explicite dans le cadre d'un business plan est l'horizon des prévisions détaillées de l'évolution de l'activité. Il dépendra de la visibilité de l'entreprise. Sa durée doit donc représenter le temps durant lequel l'entreprise se développera dans la continuité de ses décisions actuelles.
Equivalent anglais : Explicit forecast period

http://www.vernimmen.net/html/glossaire/definition_horizon_e...

taking a guess, cash-flows for an explicit period?? or cash-flows for an explicit forecast period?

--------------------------------------------------
Note added at 1 hr (2006-11-21 22:14:34 GMT)
--------------------------------------------------

the forecast elements ties in with your ACTU after all...

--------------------------------------------------
Note added at 1 hr (2006-11-21 22:18:04 GMT)
--------------------------------------------------

explicit period cashflows

Explicit Period Valuation

Forecast period valuation
Length of projection period
Calculating explicit period cashflows – use of FADE
Sense check techniques
Valuation of explicit period cashflows

http://www.efinancialnews.com/events/training/module4cashflo...

Explicit forecast period (See Chapter 40 of the Vernimmen)

The explicit forecast period is a period of projecting cash flows when the company is valued by the discounted cash flow model.

http://www.vernimmen.com/html/glossaire/definition_explicit_...


juliebarba
United Kingdom
Local time: 14:20
Works in field
Native speaker of: English
PRO pts in category: 116
Grading comment
Yes, company valuation-related. Thanks to all.

Peer comments on this answer (and responses from the answerer)
agree  Sylvia Smith: I also think the text is referring to an explicit forecast period - and Vernimmen is an outstanding reference (even if difficult to spell)
10 hrs
  -> thanks, yes in my head it reads like 'vermin' :-)
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