Im curious about the DCF method. I first want to say that I do not know how to use this method of valuation so what I may say may be inaccurate. Im curious because the method I believe values a business on future cash inflow and outflows. If so, how is this method reliable or accurate and why would you use this if you were analysing companies like ford or apple? How could you make a reliable projection when the future is uncertain? they 'project' the future but say if there was a period of high interest rates or a recession this could bring down revenues, would they account that in the equation?
Thanks all
