The most common valuation method for professional investment bankers and research analysts is the discounted cash flow (DCF) model. This model projects future cash flows that the business will ...
Ivashina, Victoria. "Discounted Cash Flows (DCF) Valuation Methods and Their Application in Private Equity." Harvard Business School Technical Note 221-012, August 2020.
DCF reflects both operations and future growth investments. It accounts for the time value of ... with steady business models. This also tells you the limits of using this formula, which is ...