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The discount cash flow analysis (DCF) is a fundamental valuation methodology broadly used by investment bankers, corporate officers, and other finance professionals. It is based on the principal that the value of a company can be derived from the PV of its projected free cash flow (FCF).
While many videos cover the actual framework and how to build the excel model, the assumptions and thinking behind the model are often left to more “real world” examples. This is that example!
Chapter 3 covered topics like;
- How do you project revenues for a DCF model?
- How many years do you project cashflows for?
- What is the exit multiple method?
- What is the perpetuity growth method?
- How do you project EBITDA for a DCF model?
- How do