Sanity-Check the DCF
Review a discounted cash flow model by checking cash-flow quality, discount rate fit, and terminal-value sensitivity.
Valuation pressure The DCF says $92M. The proposed bid is $87M. The spread looks attractive until the assumptions are stressed. A narrow valuation cushion can disappear when terminal value or discount-rate assumptions move. DCF review path Cash Flow -> Discount Rate -> Terminal Value -> Sensitivity A DCF review is not a cell-by-cell audit first. Start with the assumptions with the most value leverage. Answer $92M is above the bid A valuation range you can defend. Review the assumptions that move value before debating precision. 01 Cash flow 02 Risk 03 Terminal Cash-flow quality Forecast
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