Logo of TCD Capital, which leads to the homepage when clicked.

Scale#it

Scale#It is a Knowledge and Competency resource for entrepreneurs to strengthen governance and investors to fuel their knowledge of this asset class. This platform is under construction. Click on this banner to sign-up to be informed of new articles as they are released.

Play Video

What is a Discounted Cash Flows analysis?

Published on 18/08/2022
Contributor(s): Harold Grosfils

The DCF. There are a number of valuation methods that are used in practice and are commonly accepted. One of the most widely used is the discounted cash flow method, or DCF. Without going into too much detail, this technique allows a company to be valued on the basis of an estimate of its future income. This method is based on the assumption that the value of the company is equal to the sum of all its future cash flows available to the company and which are discounted.

The cash flows are estimated on the basis of the business plan, trying to make the forecasts as close as possible to reality, and the discount rate, called WACC in the context of this valuation technique, will be the subject of a subsequent article.

Other Resources for Entrepreneurs and Investors

Other articles by Harold Grosfils

Contact us

I am an entrepreneur

...and I want to scale up!

We can help finance your venture

Learn how

I am an investor

TheClubDeal Fund II still accepts commitments

See what TheClubDeal can offer

Learn More

Subscribe to our Newsletter

We seek to customise the content to the segments we serve.

These are both fund investors and the entrepreneurs with whom we have created alliances.

We are happy to keep in touch.

TCD Form Template Style

Subscribe to Scale#It

We are currently building the portfolio of resources to scale ventures with resilient governance.

This newsletter allows you to be kept informed of the new articles published by TheClubDeal.

Scalastra Signup