Downsides and DCF: Valuing Biased Cash Flow Forecasts PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. CFA Digest November 2011 | Vol. 41 | No. 4 | 3 pages Source: CFA InstituteRichard S. Ruback (Reviewer) William Ang, CFA (Reviewer) Read Abstract Cash flow forecasts used in discounted cash flow (DCF) valuations are often excessively optimistic and need to be adjusted for downside events. The author suggests that the appropriate adjustment to the DCF formula, incorporating both practitioner and academic approaches, depends on the nature of the omitted downside events. View more information Topics Corporate Finance : Capital Investment Decisions Credits · About the CE Program 0 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits Loading ...