The DCF Calculation is wrong. You should also include terminal value in the model. In your case, you are assuming the company stop operating at the end of Year-10. You can read about how to caluclate DC on this: http://www.investopedia.com/university/dcf/dcf4.asp
Blog: Avoiding Overvalued Company
2015-10-02 14:48 | Report Abuse
The DCF Calculation is wrong. You should also include terminal value in the model. In your case, you are assuming the company stop operating at the end of Year-10. You can read about how to caluclate DC on this: http://www.investopedia.com/university/dcf/dcf4.asp