Poll of the Day > Stocks and shares question, about DCF and intrinsic value

(+) Yeah! (+)

Lets say youve done a discounted cash flow model and youve established that based on the future free cash flow of a business, the share price is worth 5.

Its currently trading at 1, so you know there is some upside to the stock.

All of these DCF models im looking at have cash flow up to 3 or 5 years from and then have a terminal value after the final year.

So when exactly is the model saying the share price will hit its target? Will it hit the target price in 3 years? 5 years? At the terminal value period which doesnt actually exist?

so confuse

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