DCF Model – Calculating Discounted Cash Flows for Valuation Analysis
Posted by Wilbur Omar Chua on September 3rd, 2021
When a business is just starting up, it’s very difficult to determine how much it is worth. With the DCF Valuation Method, we can calculate valuation based on the expected income of the business. Which is why the DCF Model is one of the most theoretically sound valuation methods. Firstly, what is the Discounted Cash flow Analysis? The DCF Method or the Discounted cash flow is the valuation method where you discount all the potential future earnings of the business to determine how much it is worth today. We use this to compute how much a business potentially is when there are still no financials to speak of. Professional Investors widely use DCF Modelling to aid their decision making. So, how to Calculate Enterprise Value using DCF?
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About the AuthorWilbur Omar Chua
Joined: July 1st, 2021
Articles Posted: 17
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