Discounted Cash Flow | FCFF valuation | DCF Model Step by Step Guide

In this video, we go over how to create a discounted cash flow to reach a company's intrinsic value. Free Cash Flow to the Firm (FCFF) is used as the cash flow in the model. We can determine if a company's share price is over or undervalued. All the technical concepts are explained and applied using the Excel model, from free cash flows to the WACC to Terminal value.

Key steps in this DCF model:
- Forecast the FCF, typically for a 5-10y period
- Calculate the Weighted Average Cost of Capital (WACC)
- Calculate the Terminal Value
- Discount the cash flows to present
- Reach a valuation and calculate an implied share price

RESOURCES: