DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!
aswathdamodaran.substack.com
Earlier this year, I started my series on discounted cash flow valuations (DCF) with a post that listed ten common myths in DCF and promised to do a post on each one over the course of the year. This is the first of that series and I will use it to challenge the widely held misconception that all you need to arrive at a DCF value is a D(iscount rate) and expected C(ash)F(lows). In this post, I will take a tour of what I would term
DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!
DCF Myth 1: If you have a D(discount rate…
DCF Myth 1: If you have a D(discount rate) and a CF (cash flow), you have a DCF!
Earlier this year, I started my series on discounted cash flow valuations (DCF) with a post that listed ten common myths in DCF and promised to do a post on each one over the course of the year. This is the first of that series and I will use it to challenge the widely held misconception that all you need to arrive at a DCF value is a D(iscount rate) and expected C(ash)F(lows). In this post, I will take a tour of what I would term