DCF Valuation — Discounted Cash Flow Valuation Methodology

A specialized skill that enhances the DCF analysis capabilities of the valuation-expert agent.

Target Agent

• valuation-expert — DCF model construction, WACC calculation, terminal value computation

DCF Model Construction Process

Step 1: FCFF (Free Cash Flow to Firm) Estimation

FCFF = EBIT x (1 - Tax Rate)
     + Depreciation & Amortization
     - Capital Expenditures (CAPEX)
     - Change in Net Working Capital (dNWC)