The study of the cut-off point about the two-stage discounted cash flow model

When we evaluate the value of the enterprise by using two-stage discounted cash flow model, it is difficult to divide the period of rapid development and the period of stable development, lots of factors affect the cut-off point, so the cut-off point is uncertain. The purpose of this paper is to settle the uncertain cut-off point. We combine the fuzzy theory with the two-stage discounted cash flow model; the uncertainties of the cut-off point are fuzzified by the trapezoidal fuzzy number. Finally, we get the modified discounted cash flow model.