Financial Planning and Analysis (FP&A) serves as the backbone of effective financial management in organizations. It is a critical function within finance departments, providing businesses with the strategic insights and data-driven recommendations they need to make informed decisions. As we move into 2025, the FP&A landscape is evolving rapidly due to advancements in technology, economic uncertainties, and the growing importance of data analytics.
Discounted Cash Flow (DCF) is one of the most widely used valuation techniques to estimate the intrinsic value of an investment, company, or project. It helps investors and analysts assess whether an asset is overvalued, undervalued, or fairly valued based on its expected future cash flows. This step-by-step guide explains how to construct a robust DCF model.