The discounted-cash-flow formulas that is used to value common stocks can also be used to value entire businesses.

Name: The discounted-cash-flow formulas that is used to value common stocks can also be used to value entire businesses.
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Discounted-cash-flow formulas can be used to value not only common stocks, but also entire businesses by estimating the future cash flows the business will generate and discounting them back to the present. This method is commonly used in mergers and acquisitions.

The Discounted-Cash-Flow Formulas That Is Used to Value Common Stocks