QuantaVal

Three quarters of a DCF answer comes from a single line at the end — and that line deserves most of your scepticism. In a typical five-year model, the terminal value is roughly three quarters of the total answer — so the assumption you spend the least time on quietly decides the valuation. A DCF values a business as the cash it will produce, discounted back to today. The mechanics are simple: project free cash flow for a few years, discount each year at the cost of capital, then add a terminal ...