DISCOUNTED CASH FLOW (DCF) Valuation
Mr. Chander Sawhney Vice President +9810557353 chandeer@indiacp.com Discounted Cash Flow (DCF) is one of the prominent Income approaches to valuation and is used to estimate the attractiveness of any Investment opportunity on the basis of future cash flow projections of business. So far DCF is considered as the most scientific financial tool to derive the value of any company based on parameters like Projected Cash Flows, Cost of Capital, Growth cycle of Business, perpetual growth rate etc. “The Discounted Cash Flow Method expresses the present value of the business attributable to its stakeholders as a function of its future cash earnings capacity. This methodology works on the premise that the value of a business is measured in terms of future cash flow streams, discounted to the present time at an appropriate discount rate”.