The Valuation of a Going Concern on a Cashflow Basis Available to Purchase

This article contains a specification of an analytical model, occasionally described as a “fundamentalist” approach, which reflects the principles and recommendations contained in the exposure draft constituting the previous article. A computer‐based version of this model is described elsewhere. The estimation problem which constitutes the second stage of the fundamentalist approach necessarily has close affinities with the exploration of a company's financial future under alternative assumptions — a task for which computer‐based models are a veritable necessity.