Discounted cash flow (DCF) valuation is a widely utilized approach in finance for determining the value of an enterprise based on its future cash flows. The projected cash flows are discounted to their present value with the help of a discount rate which depends on the risk associated with the enterprise.

The DCF valuation approach provides insights into the intrinsic worth of businesses, stocks, bonds, and other investment opportunities. This comprehensive valuation technique can evaluate the long-term value and guide investment decisions.

These open-access course notes are an excellent resource for bankers, investment professionals, corporate finance practitioners, and portfolio managers.

Are you looking to enhance your understanding of DCF valuation? Discover the theory behind DCF modeling and gain practical knowledge with our Discounted Cash Flow Valuation course.

You can also download our free Excel templates on key financial metrics, including Return on Investment, Weighted Average Cost of Capital (WACC), Cost of Equity, and Cost of Debt.