Valuation & Deals · Intrinsic value
Discounted cash flow
Value a business as the present value of the cash it will generate: project free cash flow, add a terminal value, discount at WACC, and bridge from enterprise value to a share price.
Step 1 of 7 · Overview35 min read ·
Key idea
Prereqs: Three statements, Time value of money, WACC. Next: Comps & precedent transactions. Damodaran's valuation class; McKinsey *Valuation*.Next: 1. The recipe