TY - JOUR T1 - Discounted Cash Flow Method for Valuing International Chemical Distributors JF - The Journal of Private Equity SP - 52 LP - 69 DO - 10.3905/jpe.2018.22.1.052 VL - 22 IS - 1 AU - Tay Kin Bee Y1 - 2018/11/30 UR - https://pm-research.com/content/22/1/52.abstract N2 - Do special considerations apply to valuation in the case of large global chemical distributors? This study seeks to identify whether Income-based Discounted Cash Flow method based on projected future income would be suitable to value international chemical distributors. Two- and Three-stage Discounted Cash Flow models will be used. The expected companies’ enterprise and equity value are compared with the existing companies’ valuations. A base, bear and bull case scenario will be set up to establish the range of the company’s value for comparison with the existing valuation. This study adopts a single multiple-case study approach where actual financial data from three of the world’s largest chemical distributors were used to establish the existing companies’ valuation to demonstrate the validity and applicability of the Discounted Cash Flow method for sensitivity analysis.TOPICS: Private equity, other real assets, statistical methods, fundamental equity analysis ER -