Projected cash flow — History doesn’t tell the whole story

Description

Abstract: Projected cash flow is an important measure of future economic benefits. Although some companies may grow at a relatively constant rate, a business’s historic cash flows may not be an accurate measure of its expected future performance — especially in an uncertain business climate. This article discusses the methods valuators use to project cash flow and notes the ways cash flow projections may help owners manage cash flow more efficiently or survive the monthly (or off-season) cash crunch.