Valuing companies by cash flow discounting: ten methods and nine theories

Purpose - The aim of this paper is to answer the question: Do discounted cash flows valuation methods provide always the same value? Design/methodology/approach - This paper is a summarized compendium of ten methods including: free cash flow; equity cash flow; capital cash flow; adjusted present value; business's risk-adjusted free cash flow and equity cash flow; risk-free rate-adjusted free cash flow and equity cash flow; economic profit; and economic value added. Findings - All ten methods always give the same value. Research limitations/implications - The disagreements among the various theories of firm valuation arise from the calculation of the value of the tax shields (VTS). The paper analyses nine different theories. Originality/value - The paper is an analysis of ten methods of company valuation using discounted cash flows and nine different theories about the VTS.