Basic assumptions and shortcomings of DCF When using DCF, we have to make some basic assumptions regarding the future cash flow, discount rate, time period, terminal value and growth rate.

Understand what the discounted cash flow model is, why it is used, and how to use it to effectively analyze your findings.

We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex.