It is widely accepted that the most accurate way to value an enterprise is by absolute valuation using the discounted cash flow (DCF) method. Crucially, this method considers the time value of money. It also considers the cash flow throughout the projected life of the enterprise. This adheres closely to the definition of an enterprise's worth as the total amount of cash flow it can generate.
The DCF method includes technical concepts and calculations. We will attempt to simplify those concepts, but nevertheless, you will not have to repeat most of the complex computations required to derive some of the parameters necessary for the valuation. There will always be resources available for you to refer to, and you will certainly create your own database of resources, which you can tap as required.
