Methods of Forecasting Cash Flows in Joint-Stock Companies

Abstract

Several indicators should be taken into account in joint-stock companies when forecasting cash flows. In particular, joint stock companies should be forecasted taking into account free cash flows and discounted cash flows. In general, researchers and analysts make cash flow forecasts by calculating the expected cash flows from joint stock companies and the present value of their future income-producing assets. In particular, in practice, the method of discounted cash flows is widely used to calculate the cash flows of investment projects of joint-stock companies. In the method of discounted cash flows, the rate that reflects the level of risk in forecasting the cash flow of an investment project is calculated, and the future cash flows of joint-stock companies are reflected in the present value.