Detailed Discounted Cash Flow Method
The Detailed Discounted Cash Flow Method projects the business's financial statements for one to ten years and discounts the future cash flows back to a present value. A discounted cash flow (DCF) approach to valuation is applicable when:
An income approach has been determined to be the appropriate course of valuation; and
The business's short-term cash flows are expected to differ from the anticipated long-term cash flows.
Detailed Method vs. Summary Method
Compared to the Summary DCF Method, the Detailed DCF Method is more complicated to use, but provides greater control of the financial projections.
Detailed DCF Folder
You open the worksheets for the Detailed DCF Method from the Appraisal \ Income Approach \ Detailed DCF folder.