DCF
Discounted cash flow estimates value from future cash flows, with a worked FCFF example linking terminal value, operating value, equity, and value per share.
Cash-flow forecasts, discounting, and terminal-value assumptions connect business expectations to estimates of operating or equity value.
Cash-flow valuation translates expectations about a business into a present-value estimate. Financial Forecasting supplies assumptions about revenue, margins, investment, and financing. Discounted Cash Flow combines the amounts, payment dates, and a required return consistent with the cash-flow stream.
Choose the valuation perspective before calculating. Firm cash flows discounted at WACC estimate operating value, while equity cash flows discounted at the cost of equity estimate common-equity value. The Gordon Growth Model is a dividend-based application that assumes stable perpetual growth. It does not require shareholders to reinvest dividends or imply that the market will trade at its estimate.
Terminal Value represents cash flows after the detailed forecast and must be discounted from the correct date. Check sustainable growth, reinvestment, and valuation sensitivity rather than relying on a precise-looking endpoint. These educational models organize assumptions; they do not guarantee future cash flows, selling prices, or returns and are not personalized investment advice.
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Discounted cash flow estimates value from future cash flows, with a worked FCFF example linking terminal value, operating value, equity, and value per share.
Economic value estimates financial worth from expected benefits and costs, distinct from price, book value, and accounting fair value.
Financial forecasting estimates future revenue, profit, cash, and funding needs, with a worked example showing why profit does not guarantee liquidity.
The Gordon growth model estimates share value from constant dividend growth, with examples of dividend timing, required return, and price-implied growth.
Terminal value estimates cash flows beyond a DCF forecast, with worked examples of discounting, exit multiples, reinvestment, and sensitivity.