Summary Discounted Cash Flow Method
The Summary 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.
Summary Method vs. Detailed Method
Compared to the Detailed DCF Method, the Summary DCF Method is simpler to use, but provides less control of the financial projections. Summary DCF is the "quick and dirty" method.
Folder and Worksheets
The worksheets for the Summary DCF Method are in the Appraisal \ Income Approach \ Summary DCF folder.