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How to Value a Company with the Discounted Cash Flow Model
Motley Fool Money
How Do Discounted Cash Flow Models Work?
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The intrinsic value of a business is the estimated future free cash flows discounted back to their present value. The further out you get, the lower the present value of those free cash flows are. We incorporate the riskiness of a business into our discounted cash flow models with something called a discount rate.
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