Build a DCF, Step by Step
Start from scratch and build a complete discounted cash flow model for a real Indian company, one concept at a time. Each step reveals one new assumption, explains why it matters, and shows you the live consequence in the model.
Step 1 of 8: Pick a company
What is a DCF?
A Discounted Cash Flow (DCF) model estimates what a company is worth today based on the cash it will generate in the future. The core idea: a rupee today is worth more than a rupee tomorrow, because you can invest today's rupee and earn a return.
We forecast how much cash the business will produce over the next five years, then add an estimate for all future cash flows beyond that (the "terminal value"), and discount everything back to today's value. The result is what the business should be worth right now.
In the next 7 steps, you'll build this model one assumption at a time.
Asian Paints
ASIANPAINTPaints & Coatings
India's largest paint company with ~55% market share in decorative paints. Known for strong distribution, brand loyalty, and a growing home décor segment.
Historical revenue (₹ Cr)
Why this matters: The base revenue is our starting point. Every cash flow we forecast builds from this number. The historical trend also tells us whether the business has been growing steadily or erratically - context you'll use when you set the growth rate in the next step.
Asian Paints