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    Financial Forecasting and Company Valuation (DCF Method)

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    I forecasted the cash flows for DELL for the next 5 yrs (2006-2010) with the help of an online TA. I found the discounted cash flows, but what do I look for when valuing the firm? First, is the value of the firm on my Excel correct, how about the DCF? Is the price per share correct? It seems too low considering the current stock price of $41.00. Is that the correct way to calculate it? How do I know if the company is overvauled or undervalued? How do I justify the growth rate, do I look at analysts estimates on MSN Money (key ratios)? How do I know if this is a good investment based on my Excel? Please help, I need to understand the valuation of a company in order to continue on and do this for my other 6 companies. Help would be appreciated, thanks. Attached is my Excel for Dell.

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    I forecasted the cash flows for DELL for the next 5 yrs (2006-2010) with the help of an online TA. I found the discounted cash flows, but what do I look for when valuing the firm? First, is the value of ...

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    This explains the steps of Financial Forecasting by company Valuation (DCF Method)

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