DCF Valuation of Nonprofit Universities

Yan He, Frank Long


We conduct the Discounted Cash Flow (DCF) valuation of two nonprofit organizations: Syracuse University and Indiana University. We transform nonprofits to for-profits by converting nonprofit social benefit to net earnings and by adopting for-profit cost of equity and tax rate. These adjustments attempt to capture considerable hidden value to equityholders. We find that in the best scenario, the net worth (market value of equity) could be about 2 times the book equity for both universities in June 2017.

Full Text:


DOI: https://doi.org/10.11114/afa.v6i1.4553


  • There are currently no refbacks.

Paper Submission E-mail: afa@redfame.com

Applied Finance and Accounting (AFA)        

ISSN 2374-2410(Print)           ISSN 2374-2429(Online)

Copyright © Redfame Publishing Inc.

To make sure that you can receive messages from us, please add the 'redfame.com' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders. If you have any questions, please contact: afa@redfame.com