Factors To Be Considered While Doing Dcf Method Valuation

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Factors To Be Considered While Doing Dcf Method Valuation

  1. Projection of the Financial statement
  2. Calculating free cash flow
  3. WorkingCapital and Capital Expenditures:
  4. TimeHorizon:
  5. DiscountRate (Cost of Capital): Depends on company’s risk profile, market conditions,Equity risk premium, and the specific project or  WACC
  6. TerminalValue: Gordon’s Growth Model
  7. Risk and Growth Factors:
  8. Tax Implications:
  9. Consistency and Realism:
  10. Sensitivity Analysis: