Cashflow Valuation

Intrinsic value  =  the sum of all future cashflows, each discounted to present value

Net Present Value Net Present
Value
 = CF0 + CF1(1+r) + CF2(1+r)2 + ... + CFn-1(1+r)n-1 + CFn(1+r)n + PTVn(1+r)n

  CFn Projected cashflow n year(s) from now

PTVn = CFn (1+g) (r−g) Terminal value n year(s) from now

Period
Cashflow
Discounted
Net PV