The discounted cash flow calculations are based on the annual cash flow calculations on the CashFlow sheet and uses the NPV calculation method with the WACC as discount rate to discount the future cash flows to their present value which in effect represents the value of the business. If the terminal value option is activated on the Assumptions sheet, the terminal value is calculated and included at the end of the forecast period and then also discounted by the WACC to its present value.

CopyFinancial > The discounted cash flow calculations are based on the annual cash flow calculations on the CashFlow sheet and uses the NPV calculation method with the WACC as discount rate to discount the future cash flows to their present value which in effect represents the value of the business. If the terminal value option is activated on the Assumptions sheet, the terminal value is calculated and included at the end of the forecast period and then also discounted by the WACC to its present value.