MGMP 543, FINANCE
Session 17b – Discounted Cash Flow (DCF)
Professor Kunal Sachdeva
1
,Today’s Topics – Discount Cash Flow (DCF)
• Putting it All Together!
• Steps to Value a Firm
• Examples
2
, Let’s Put Everything Together
• We are ready to put EVERYTHING we’ve learned in this class
together to determine the value of a firm!
• This will rely on:
1. Present Value Calculations (PV)
2. Calculation of the firms opportunity cost (WACC)
3. Free cash flow to the firm (FCFF)
3
Session 17b – Discounted Cash Flow (DCF)
Professor Kunal Sachdeva
1
,Today’s Topics – Discount Cash Flow (DCF)
• Putting it All Together!
• Steps to Value a Firm
• Examples
2
, Let’s Put Everything Together
• We are ready to put EVERYTHING we’ve learned in this class
together to determine the value of a firm!
• This will rely on:
1. Present Value Calculations (PV)
2. Calculation of the firms opportunity cost (WACC)
3. Free cash flow to the firm (FCFF)
3