Introduction to DCF Valuation
Discounted Cash Flow (DCF) modeling is the cornerstone of fundamental corporate valuation used by investment banks and private equity funds worldwide.
Key Steps in DCF
- Project Unlevered Free Cash Flows (UFCF)
- Calculate Weighted Average Cost of Capital (WACC)
- Determine Terminal Value via Gordon Growth or Exit Multiples
- Discount Cash Flows to Present Value