What is DCF?
Discounted cash flow model that values an asset from projected future cash flows.

5 × $100 at 10% → $379 today
A DCF model discounts…
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In real work
DCF sensitivity shows terminal growth drives half the valuation. Update the deck.
In the illustration
Five $100 stacks, years 1 to 5, pass through the tunnel and each comes out smaller the later its year (91, 83, 75, 68, 62); they pile into the bin and the counter totals them.
Build a DCF in your finance platform for the acquisition target: five years of free cash flow, a terminal growth of 2 percent, and the value at three discount rates.
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03Career
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