DCF Analysis Highlights 5 Stocks To Watch This Week
Finbox io | Mar 10, 2017 06:32PM ET
Discounted Cash Flow (DCF) Analysis
The basic philosophy behind a DCF analysis is that the intrinsic value of a company is equal to the future earnings or cash flows of that company, discounted back to the present value. The intrinsic value is considered the actual value or “true value” of the company based on an individual’s underlying expectations and assumptions.
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A DCF analysis can seem complex at first but it’s worth adding to your investment analysis toolbox since it provides the clearest view of company value.
Value investors may want to take a closer look at the names listed above. Don’t be surprised if these stocks begin to trade closer to their intrinsic value following their earnings release.
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