Thursday, December 1, 2022
HomeValue InvestingInventory Valuation with a DCF Mannequin

Inventory Valuation with a DCF Mannequin


The DCF (Discounted Money Movement) mannequin is a quantitative technique of valuing a enterprise primarily based on the speculation that the enterprise is well worth the sum of all of its future money flows, discounted again to their current worth. In different phrases, DCF valuation tries to find out how a lot an funding is price right now, primarily based on how a lot money it’s going to generate sooner or later. DCF is broadly utilized by skilled traders to worth shares, bonds, and different monetary property.

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