We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. In the first stage we need to estimate the cash flows to the business over the next ten years. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. View our latest analysis for ZoomInfo Technologies The model If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Don't get put off by the jargon, the math behind it is actually quite straightforward.
The Discounted Cash Flow (DCF) model is the tool we will apply to do this. ( NASDAQ:ZI) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. How far off is ZoomInfo Technologies Inc.
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