The Discounted Cash Flow (DCF) method is the backbone of the Income Approach to valuation. This beginner-friendly tutorial from The WallStreet School walks through how a DCF valuation is put together, step by step:
- Projecting a company's free cash flows
- Estimating the discount rate (WACC)
- Calculating the terminal value
- Moving from enterprise value to equity value per share
Where the Damodaran lectures in this section explain the why of valuation, this video shows the how. It is a practical companion for students, analysts and business owners who want to see how a DCF model is actually built.