A Comparison bet
A
Comparison between Ohlson 95 Model and Discounted Cash Flow: Empirical Evidence
from Iran
Zahra Poorzamani1 Mohammad
Pouranfar2
1Department of Accounting, Central Tehran branch,
Islamic Azad University, Tehran, Iran
2Student of Accounting, Department of Accounting,
Central Tehran branch, Islamic Azad University, Tehran, Iran
Email: [email protected]
Abstract: This
study compares the discounted cash flow approach and ohlson 95 methods. In
theory discounted cash flow and ohlson95 approaches are equal, hence this study
detects whether it is possible to astute that one approach has a privilege to
the other form. The two valuation models are analytically compared. This study
presents that if users present uncomplicated hypotheses in their valuation,
they present prejudices in their corporation value estimations. Finally, due to
the fact that framework for predicting is usually on the basis of accrual
accounting and also the budget control is most of the time on the basis of accounting
numbers rather than cash flow numbers, it is probable that corporation value
estimation on the basis of accrual accounting conceptions and financial
statement analysis is more concisely than the later.
[Zahra
Poorzamani Mohammad Pouranfar. A Comparison between Ohlson 95 Model and
Discounted Cash Flow: Empirical Evidence from Iran. J Am Sci 2013;9(3):40-47].
(ISSN: 1545-1003).http://www.jofamericanscience.org. 7
Key words: Ohlson95, Discounted cash flows, Discount rate,
Book value. Full Text 7
