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If they can use models, they can apply assumptions about expected cash flows and determine current value from those calculations.
Embedded value, used for evaluating insurance companies, reflects expected cash flows from sales in the year and updating assumptions based on experience.
Under the exposure draft issued by the board, banks would frequently evaluate the expected cash flows from groups of loans and securities they owned, and take write-downs to the extent they expect the cash flow to be lower than called for in the loan documents.
Synthetic insurance premiums are designed to "protect" the value of expected cash flows which are treated as additional project costs.
To gird themselves, MCA players are tweaking their financial models to get a better handle on expected cash flows.
While some real estate analysts discount expected cash flows (generally rent payments) from commercial properties that REITs own, Green Street goes a step beyond.
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Discounting expected cash flow for the coming ten years, she calculates a fair price of $413.
The third approach, the income method, is forward-looking, relying on the present value of expected cash flow.
In addition, this expected cash flow will facilitate the Company's financial objective of further deleveraging Lionsgate's balance sheet.
Comcast said that it expected cash flow, or operating income before depreciation and amortization, from its cable operations to rise 15percentto17percentcent in 2004.
At the end of the year, it will have $21 billion in net debt, or 3.3 times its expected cash flow, according to Aryeh Bourkoff of UBS Investment Bank.
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