limitations of discounted cash flow (DCF) model - IMAGE
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Is the DCF Model Flawless? The Limitations of Discounted Cash Flow (DCF) Model

While the discounted cash flow (DCF) model is a widely used method for valuing stocks. But it is not without limitations. Let’s examine the limitations of discounted cash flow (DCF) model. The limitations are with respect to present value calculation based on the future growth rate, cash flow estimation, and discount rate. The article will…

Discount Rate - Image

Discount Rate: What is it? How to estimate the right value for it?

The discount rate is nothing but our minimum expected rate of return from an investment. The concept of discount rate is used to calculate the present value of future cash flows originating from an investment. Why do we need to calculate the present value? It is a method to check if an investment is worth…