Discounted Cash Flow analysis is one of the primary valuation methods. Seeking Alpha authors should understand the strengths and weaknesses of a DCF model and best practices. Here we look at ...

Discounted Cash Flow (DCF) analysis is a technique for determining what a business is worth today in light of its cash yields in the future. It is routinely used by people buying a business.

For more references and tools, check out CFA Institute's page on Equity Valuation Models here . Here you can find a detailed walk-through of the discounted cash flow model from an MIT course.

The discounted free cash flow model (DFCFM) simply utilizes future free cash flow projections discounted back to today's present value by using an estimated cost of capital. A pro is that you ...

The discounted cash flow model is a time-tested approach to estimate a fair value for any stock investment. Here's a basic primer on how to use it.

Reverse-Engineering DCF Discounted cash flow, however, can be put to use in another way that gets around the tricky problem of accurately estimating future cash flows.