The discounted cash flow model is one way some investors measure a company’s intrinsic value. As a concept, the discounted cash flow model is a mathematical equation that takes a company’s expected growth in cash flow and subtracts a discount rate to account for risk.
But, as Education Coach Cameron May explains in this video, it’s a balance of science and art.
This video is part of our Fundamental Analysis course. Open an account with TD Ameritrade to get access to this course and other immersive investor education:
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