Please complete the DCF for one of the companies listed below, and draw a conclusion as to how and why you would value the company based on the results of your DCF.
In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted by using cost of capital to give their present values (PVs). The sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question.
Please complete the DCF for one of the companies listed below, and draw a conclusion as to how and why you would value the company based on the results of your DCF.
The formula for the DCF is as follows: The discounted cash flow formula is derived from the future value formula for calculating the time value of money and compounding returns.
Company:
1) Starbucks
2) Netflix
3) The Walt Disney Company
4) Tesla