Expected future cash flows

Expected future cash flows

Projected future cash flows associated with an asset.

Expected Future Cash Flows

The cash flow an investor or company expects to realize from a project before that project begins. The actual cash flows received may be greater or less than the expected future cash flows. They are often measured according to their present value. See also: Expected return.
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According to the company, when proposing a dividend to the AGM, the board of directors will look at the general macro-economic environment, Sanoma's current and target capital structure, Sanoma's future business plans and investment needs, as well as both previous year's cash flows and expected future cash flows affecting capital structure.
The yield/discount rate considers all expected future cash flows (both positive and negative over time) including proceeds from disposition if any.
This repayment is based on DIFCI achieving continued sustainable revenue streams, reaching agreement on the deferment of certain debts due to the government of Dubai, continued support from the government of Dubai and expected future cash flows based on the utilisation and disposal of its assets and liabilities," Saleh said.
Under the recognition model for cash flow hedges, ineffectiveness is recognized only to the extent that the cumulative change in the fair value of the derivative instrument exceeds the cumulative change in the expected future cash flows from the hedged transaction.
Valuations are determined by expected future cash flows adjusted for risk.
So, much work that goes by the name of fiscal risk analysis is devoted to estimating expected future cash flows related to unrecorded assets and liabilities, such as those associated with pensions, future health spending, and public-private partnerships.
He added: "As an advisor, it is always frustrating when we find clients with financing needs, such as a requirement to borrow against expected future cash flows, which existing sources of funds are often unable to meet.
Set the value of trade secret assets based on the net present value of expected future cash flows to be derived from the competitive advantages conferred by the asset (a value that will be zero, Halligan notes, without reasonable measures to protect the asset); and
Moreover, entities estimating expected future cash flows to measure fair value should rely on reasonable and supportable assumptions and projections, and consider all available evidence to estimate such expected future cash flows.
Although the correlation between reported earnings and stock price is undeniable, the reader fails to realize that reportable earnings only affect stock price because of the informational content about the expected future cash flows.
The company said it expected future cash flows from enhanced voice services and new products enabled by the roll out of third generation handset technology to justify its faith in the mobile business.
16) Examples of valuation models include the present value of expected future cash flows, option-pricing models, matrix pricing, option-adjusted spread models, and fundamental analysis.

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