DCF is the foundational intrinsic-valuation method: it says an asset is worth the present value of the cash it will generate. For a company, analysts project free cash flows, discount them at the WACC, and add a terminal value to estimate enterprise or equity value.
Formula
Value = Σ [Cash Flowₜ ÷ (1 + r)ᵗ] + Terminal Value
Example
If a project pays ₹100 next year and the discount rate is 10%, that cash flow is worth ₹90.9 today.
Relevant NISM series
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