Unlock the Secrets of the Discounted Cash Flow (DCF) Formula | Value Investor Chatter | #31

The Discounted Cash Flow (DCF) formula is a popular method used to evaluate the intrinsic value of a business. This method takes into consideration the projected cash flows of the business and discounts them to their present value. The formula is calculated by taking the expected future cash flows and subtracting the initial investment cost. The result of the formula is meant to represent the net present value of the business and helps investors make informed decisions about potential investments.

Episode Outline

(00:00) Introduction

(03:36) Discounted Cash Flow

(08:27) Disadvantages of using Discounted Cash Flow

(13:52) Assumptions

16:58 Investing is art before science

20:21 Conclusion

Value Investor Chatter

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