A discounted cash flow values a business based on the present value of its projected future cash flows. First, forecast free cash flows over a projection period (typically 5–10 years). Next, calculate the Terminal Value using either the Gordon Growth Method (perpetual growth rate) or an Exit Multiple Method. Then, discount both the projected cash flows and the terminal value back to present using the WACC as the discount rate. Finally, sum these values to get Enterprise Value, and adjust for net debt and other claims to arrive at Equity Value.