Most finance courses espouse the gospel of discounted cash flow (DCF) analysis as the preferred valuation methodology for all cash flow-generating assets. In theory (and in college final ...

Shutterstock To discount cash flow properly, you first need to be familiar with how to calculate the smaller components of the formula—notably, free cash flow to the firm (FCFF). FCFF is simply ...

DCF valuation helps you figure out what an investment is worth today based on projected cash flows by adjusting for risk and time. A critical weakness in many DCF models lies in the terminal value ...