DCF Guardrails at Your Fingertips
Recall practical guardrails for reviewing a DCF valuation.
CAST DCF review path What does CAST check in a DCF? Four guardrails before trusting value. Cash flow Which cash-flow check is stronger? DCF values cash, not optimistic revenue. Objection The model already has a WACC from public comps, so discount rate is handled. Use when the asset is smaller, private, concentrated, or riskier than the comps. Your line Let's show a rate range. Public peer WACC is a reference point, not automatically the target's risk rate. Accepting objective-looking inputs even when they mismatch the asset. It separates data availability from economic fit. Terminal value What is the red flag…
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