Discounted cash flow (DCF) analysis is a valuation method used to estimate the value of an investment based on its future cash flows. It discounts those future cash flows back to the present using a discount rate that accounts for risk. This report provides a practical guide to conducting DCF valuations, including estimating free cash flows, determining an appropriate discount rate, and conducting sensitivity analysis.
Discounted cash flow (DCF) analysis is a valuation method used to estimate the value of an investment based on its future cash flows. It discounts those future cash flows back to the present using a discount rate that accounts for risk. This report provides a practical guide to conducting DCF valuations, including estimating free cash flows, determining an appropriate discount rate, and conducting sensitivity analysis.
Discounted cash flow (DCF) analysis is a valuation method used to estimate the value of an investment based on its future cash flows. It discounts those future cash flows back to the present using a discount rate that accounts for risk. This report provides a practical guide to conducting DCF valuations, including estimating free cash flows, determining an appropriate discount rate, and conducting sensitivity analysis.