What is intrinsic valuation? What is DCF?

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Intrinsic valuation is a method to estimate the true value of an asset or investment based on its fundamental characteristics. DCF (Discounted Cash Flow) is a common intrinsic valuation method that calculates the present value of expected future cash flows.

Intrinsic valuation involves analyzing the financial and qualitative aspects of an asset to determine its true worth.
DCF is a valuation method that discounts projected future cash flows to their present value, taking into account the time value of money.
The formula for DCF is: DCF = CF1/(1+r)^1 + CF2/(1+r)^2 + ... + CFn/(1+r)^n, where CF represents cash flows and r is the discount rate.
Intrinsic valuation helps investors make informed decisions by comparing the calculated value with the market price of the asset.
DCF is widely used in finance and investment analysis to determine the fair value of stocks, bonds, and other financial instruments.

What is intrinsic valuation? What is DCF?

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