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How we compute the DCF model

Our DCF model projects free cash flow forward, adds a Gordon terminal value, discounts everything at the cost of capital, and converts the result to a per-share figure. Cash-flow inputs come from SEC filings and the assumptions are shown alongside the output.

A discounted cash flow (DCF) model estimates intrinsic value by projecting a company's future cash flows and discounting them to the present. Our implementation is a multi-period DCF with a terminal value, following the standard intrinsic-value formulation.

We start from a base cash flow and project it forward, by default five periods, at an assumed growth rate. After the projection window we add a Gordon-growth terminal value that captures all cash flows beyond it, assuming a slow perpetual growth rate. Every projected cash flow and the terminal value are then discounted at the weighted average cost of capital (WACC).

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