
This podcast episode aims to teach listeners how to perform discounted cash flow (DCF) analysis. The episode begins by explaining the basic concept of DCF analysis and its importance in valuing companies. The episode then breaks down the key components of DCF analysis, including free cash flow, discount rate, and terminal value. Listeners are then guided through the step-by-step process of performing a DCF analysis, including forecasting free cash flows, estimating the discount rate, calculating terminal value, discounting future cash flows, and calculating enterprise value. The episode concludes with a discussion of advanced topics such as sensitivity analysis, scenario analysis, and Monte Carlo simulation, as well as a case study.