07 November 2011
sir i am unable to calculate DCF values of share please explane me in very deatiled way because it is very important and i m totally blank in this.
FOR MORE INFO: http://www.moneychimp.com/articles/valuation/dcf.htm
A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.
Calculated as:
Also known as the Discounted Cash Flows Model.
FOR MORE INFO: https://www.caclubindia.com/forum/dcf-method-of-share-valuation-89592.asp