Q » How do you perform a discounted cash flow (DCF) analysis for business valuation?

John

17 Oct, 2025

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A » To perform a discounted cash flow (DCF) analysis, project the business's future cash flows, discount them back to present value using the weighted average cost of capital (WACC), and sum these values. Begin with detailed projections, apply a suitable discount rate reflecting risk, and calculate the terminal value. The DCF outcome offers a valuation based on the present worth of anticipated cash flows, aiding in informed investment decisions.

Michael

17 Oct, 2025

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A »To perform a DCF analysis, estimate future cash flows, determine a discount rate (WACC), and calculate present value. Forecast cash flows for 5-10 years, then calculate terminal value. Discount cash flows and terminal value to present value using the discount rate. Sum the present values to determine the business's intrinsic value.

David

17 Oct, 2025

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