Discounted Cash Flow | DCF Model Step by Step Guide

Discounted Cash Flow step by step guide using free DCF excel model.
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In this video, we go over how to create a discounted cash flow with the end goal of reaching a company's intrinsic value. Through this, we can determine if a company's share price is over or undervalued. From free cash flows, to the WACC, to Terminal value, all the technical concepts are explained and applied using the Excel model.

Key steps in this DCF model:
- Forecast the FCF, typically for a 5-10y period
- Calculate the Weighted Average Cost of Capital (WACC)
- Calculate the Terminal Value
- Discount the cash flows to present
- Reach a valuation and calculate an implied share price

RESOURCES:
💻 FREE DCF Template for this video: https://docs.google.com/spreadsheets/d/1W4uJpL4Iu_3NhcXoFSAQD9GuX-OwRwsS/edit?usp=sharing&ouid=102910012145833916527&rtpof=true&sd=true
📹 Valuation Methods Video: https://youtu.be/ZQ8wODESzhs

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Chapters:
0:00​ -​ Intro
1:08​ - DCF Steps
2:40​ - Free Cash Flow
6:23​ - WACC
9:35​ - Terminal Value
12:11​ - Discounting Cash Flows
13:45​ - Equity Value
15:05​ - Full DCF Model
19:22​ - Assumptions

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