DCF valuations offer a useful framework for understanding cash flows, but how much should we rely on them in practice? With 80% of their value tied to terminal assumptions and holding periods often much shorter than expected, it’s important to approach them with caution.

In an article for the CFA Institute Enterprising Investor,  Sandeep Srinivas, Fund Manager at FIM explores how to complement DCF analysis with a focus on market cycles, cash flow resilience, and long-term trends for more balanced investment decisions.

To read the full article and find out more: The Discounted Cash Flow Dilemma: A Tool for Theorists or Practitioners? | CFA Institute Enterprising Investor

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