Determination of company value using the discounted cash flow method

In his thesis, Tofaş Türk Otomobil Fabrikası A.Ş. Valuation has been made with Discounted Cash Flow Method, one of the most widely used methods. While making a valuation according to the method known as the Discounted Cash Flow Method in the literature; Valuation has been made according to three models: Standard Firm Value Model, Adjusted Firm Value Model and Equity Value Model. The assumptions of the method are very difficult to be used by everyone, as they depend on the subjective judgment of the appraiser. In order to reduce this difficulty, in order to make future predictions of sales in the method, assumptions for the future were used by using Forecast.ETS and Forecast.ETS.Confint formulas developed by Excel Program. Thus, three different values are presented according to all three models: Optimistic Scenario, Normal Scenario and Pessimistic Scenario. The purpose of the study is to facilitate the applicability of the method and test its applicability on businesses in the automotive industry. The result obtained from the study was Adjusted only according to the Pessimistic Scenario, it was seen that the value obtained by the Firm Value Model corresponds to the stock market performance, which is accepted as Market Value, and all other values are valued above the Market Value. The first, if Market Value is accepted as the Real Value of the company, it can be said that the closest to the true result is obtained only with the Firm Value Model Adjusted according to the Pessimistic Scenario. Second, if it is assumed that the Market Value does not accurately reflect the Real Value of the company and instead correctly reflects the Real Value of the company by the results calculated according to the models, we can say that eight of the nine firm values we find are above the Market Value of the firm and the market places a lower value on the company. Keywords: Firm Valuation, Discounted Cash Flow Method, Automotive Sector