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Step 1. Forecast free cash flow (FCF) for the next 10 years. Step 2. Dicount these FCFs to reflect the present value: Discounted FCF = FCF for that year / (1 + R)^N. R = discount rate and N = year being discounted. Step 3. Calculate the perpetuity value and discount it to the present:Continue reading “Simple 10-Year Valuation Model”