What key output does a DCF analysis aim to calculate?

In a Discounted Cash Flow (DCF) analysis, the primary goal is to calculate the Present Value of Future Cash Flows. This involves estimating the cash flows that a business is expected to generate in the future and then discounting those cash flows back to their value today, using a discount rate that reflects the riskiness of those cash flows.

The reason this is central to the DCF method is that it provides a quantifiable measure of a company's intrinsic value based on its expected financial performance. By calculating this present value, analysts can determine whether an investment is undervalued or overvalued relative to its current market price, aiding in investment decision-making.

While net revenue and future growth rate are important components of a company's financial performance and can influence projections within a DCF model, they themselves are not the key output of the analysis. Similarly, market share is more of a market position indicator rather than a direct result of a DCF evaluation.