Generally speaking, a DCF valuation consists of two parts: a near-term cash flow projection discounted back,...

Generally speaking, a DCF valuation consists of two parts: a near-term cash flow projection discounted back, and:

a terminal value which captures the value of long-term cash flows

a premium value which captures the near-term risk components

a contingent value which captures upside volatility in the cash flows

an uncertainty value which adjusts the cash flows for the downside risk

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Generally speaking, a DCF valuation consists of two parts, the other one being:

a terminal value which captures the value of long-term cash flows

jeff jeffy answered 1 year ago

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