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Financial Statement Analysis — DCF and Comparable Company Analysis
Two complementary methods anchor every fair-value estimate. A DCF derives intrinsic value by discounting projected free cash flows at the weighted average cost of capital, where terminal value typically makes up 60-80% of the total — making growth and discount-rate assumptions decisive. Comparable company analysis values a business using market multiples from similar public peers. This module teaches you to triangulate between DCF and comps to produce a valuation range with confidence, not a false single point.
⏱ 22 minModule A2.3
// What you'll learn
- Two complementary methods anchor every fair-value estimate.
- A DCF derives intrinsic value by discounting projected free cash flows at the weighted average cost of capital, where terminal value typically makes up 60-80% of the total — making growth and discount-rate assumptions decisive.
- Comparable company analysis values a business using market multiples from similar public peers.
- This module teaches you to triangulate between DCF and comps to produce a valuation range with confidence, not a false single point.
// Full access
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