Forecasting anything into the distant future is difficult and the same applies to forecasting free cash flows (FCFs) for businesses. This is why I’ve decided to use analyst FCF forecasts in my DCF to ...

The DCF model follows the principle that a firm’s “true” value today is equal to the sum of all its the future free cash flows (FCF) it will make in the future (to infinity). Since the hardest part of ...

Knowing which valuation model to use for financial analysis can be incredibly confusing for even the most seasoned of investors. For instance, while my relative valuation model tells me Hexcel ...

Choosing the right financial tool to evaluate a company can be a daunting task, especially when different models are giving you drastically different conclusions. A prime example of conflicts between ...

At the heart of the DCF is the basic assumption that a firm’s intrinsic valuation is equivalent to the sum of all its future free cash flows (FCF). As those familiar with the DCF will know, ...

Before we move on, let’s evaluate whether this number is accurate. Since it is generally impossible to forecast FCFs indefinitely, it is common for analysts to forecast for an explicit forecast ...

Two camps traditionally exist when it comes to stock valuation: intrinsic vs. relative. Intrinsic valuation involves cash flow projections, estimated growth rates, and present value discounting.

Discover how the Multistage Dividend Discount Model uses varying growth rates to value stocks, including blue-chip companies, throughout different business cycles.