IndiaNifty 5024,055.80▼ -0.10%
IndiaBSE Sensex76,944.28▼ -0.02%
IndiaNifty Bank57,409.60▼ -1.06%
IndiaNifty IT31,496.70▲ +0.98%
IndiaNifty Auto28,491.05▲ 0.00%
IndiaNifty Pharma26,792.65▼ -1.45%
IndiaNifty FMCG46,457.15▲ 0.00%
USS&P 5007,631.47▼ -0.71%
USDow Jones52,766.90▼ -0.79%
USNASDAQ26,099.77▼ -1.03%
UKFTSE 10010,789.30▼ -0.32%
JapanNikkei 22564,473.16▼ -2.63%
Hong KongHang Seng25,022.25▼ -1.21%
GermanyDAX25,970.11▼ -1.10%
FranceCAC 408,301.85▼ -0.39%
AustraliaASX 2008,957.00▼ -1.21%
IndiaNifty 5024,055.80▼ -0.10%
IndiaBSE Sensex76,944.28▼ -0.02%
IndiaNifty Bank57,409.60▼ -1.06%
IndiaNifty IT31,496.70▲ +0.98%
IndiaNifty Auto28,491.05▲ 0.00%
IndiaNifty Pharma26,792.65▼ -1.45%
IndiaNifty FMCG46,457.15▲ 0.00%
USS&P 5007,631.47▼ -0.71%
USDow Jones52,766.90▼ -0.79%
USNASDAQ26,099.77▼ -1.03%
UKFTSE 10010,789.30▼ -0.32%
JapanNikkei 22564,473.16▼ -2.63%
Hong KongHang Seng25,022.25▼ -1.21%
GermanyDAX25,970.11▼ -1.10%
FranceCAC 408,301.85▼ -0.39%
AustraliaASX 2008,957.00▼ -1.21%
Invest and Educate
Advanced Fundamental
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Discounted Cash Flow (DCF) Valuation

15 min read·Educational · Not investment advice

The Core Principle

A company's true value = present value of all future free cash flows it will generate.

Free Cash Flow (FCF)

FCF = Operating Cash Flow − Capital Expenditure

Represents cash left over for shareholders after maintaining/growing the business.

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