The discounted free cash flow model (DFCFM) simply utilizes future free cash flow projections discounted back to today's present value by using an estimated cost of capital. A pro is that you ...

Discounted cash flow (DCF) estimates the value of an investment based on its expected future cash flows, which are discounted (reduced) to its present value using a discount rate.

MS Excel is only going to do what you tell it to. If you input a 20% terminal growth rate or a 1% WACC, it is not going to give you a sanity check (like a PM surely would).

In a previous section of Stephen Horan, Robert R. Johnson and Thomas Robinson's "Strategic Value Investing: Practical Techniques of Leading Value Investors," we were given an overview of free cash ...

Calculating free cash flow is useful for investors and lenders to evaluate the success of a company. To create an Excel spreadsheet to calculate operating cash flow, first merge the first row of ...

The more concerning issue is the large decrease in free cash flow in my model. As you can see from its following earnings report slide, as of Q1 2025, Amazon's FCF has continued its downward trend ...