Why we skip discounted cash flow
$27
$53
13% growth, 10% discount rate17% growth, 8% discount rate
| 13% growth, 10% discount rate | $27 |
| 17% growth, 8% discount rate | $53 |
Perfect in theory. In practice, nobody can forecast five to ten years of cash flow
Why it matters
Move growth two points either way and the discount rate one point, and the value runs from $27 to $53. So we work with ranges and scenarios, not one precise number.