Discounted Cashflow Model(DCF)

     

     

  • This method enables the user to define absolute value of the company
  •  

  • It is the process of SUM of FUTURE CASHFLOWS, which is discounted at a particular rate
  •  

    Valuation Methods

     

     

    Free CAshflow method we can classify in two types

     

  • FCFF: Free Cashflow to Firm
  • FCFE: Free Cashflow to Equity
  •  

    What is FREE CASHFLOW?

     

  • Free CashFlow doesn't mean as NET INCOME
  •  

  • It represents to CASH available for distribution to:
    • Creditiors
    • Share holders
    •