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Venture capitalists criticize DCF (Discounted Cash Flow) valuation as inappropriate for young companies, but this criticism misunderstands what DCF is: at its core, DCF simply states that a business's value equals the present value of expected cash flows, which is a fundamental truth that has always applied regardless of the company's stage

causalpending

Speaker

Aswath Domodaran

Evidence Quote

“So when you hear DCF being used as a curse word-- and venture capitalists have used this on me... I think they're completely misunderstanding what a Discounted Cash Flow valuation is. Because ultimately, what am I saying? The value of your business is the present value of your expected cash flows from running this business.”

Source

Valuation in Four Lessons | Aswath Damodaran | Talks at Google— Talks at Google
Created: 8/11/2026, 1:45:13 AM

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