DCF Valuation: How to Value a Company from Its Cash Flows
Learn how to build a discounted cash flow model that projects free cash flow, estimates terminal value, and arrives at an implied share price.
Value companies and securities with DCF, terminal value, enterprise value, comparable companies, precedent transactions, and dividend and bond models.
7 guides in this collection
Learn how to build a discounted cash flow model that projects free cash flow, estimates terminal value, and arrives at an implied share price.
Learn how to calculate terminal value using the perpetuity growth method and the exit multiple method, and how the choice between them affects your DCF valuation.
Learn how to calculate enterprise value, how it differs from market cap, and why analysts use it to compare companies across different capital structures.
Learn how to value a company using comparable company analysis by selecting peers, calculating trading multiples, and applying them to a target.
Learn how to value a company using precedent transaction analysis by selecting comparable deals, calculating deal multiples, and applying them to a target.
Learn how the dividend discount model values a stock by discounting future dividends, including the Gordon Growth Model formula and sensitivity analysis.
Learn how to price a bond by discounting coupon payments and face value. Covers premium bonds, discount bonds, and yield to maturity.