kassavirtaperusteiset

Kassavirtaperusteiset, a Finnish term, translates to "cash flow-based" in English. It refers to an approach or method where financial decisions, valuations, or analyses are primarily driven by the expected future cash flows generated by an asset, project, or company. This perspective is fundamental in many areas of finance and business.

In investment appraisal, a kassavirtaperusteinen analysis involves forecasting the cash inflows and outflows over the lifespan of an investment. The net present value (NPV) and internal rate of return (IRR) are common metrics used to evaluate the profitability of an investment based on these projected cash flows. A project is generally considered viable if its kassavirtaperusteinen analysis indicates a positive NPV or an IRR exceeding the required rate of return.

Company valuation often employs kassavirtaperusteiset methods, such as the discounted cash flow (DCF) model. This technique estimates the intrinsic value of a business by discounting its projected future free cash flows back to their present value. The underlying principle is that the true value of a business lies in its ability to generate cash for its owners.

The kassavirtaperusteinen perspective emphasizes the importance of actual cash movements rather than accounting profits, which can be influenced by non-cash items and accounting conventions. It is considered a more direct measure of financial performance and economic value creation. This approach is widely used by investors, analysts, and corporate finance professionals when making significant financial decisions.