I worked at a McKinsey once upon a time, and this is exactly how we did valuations. But this article elides the fact that with this kind of model, you can quite literally get any output you want from choosing your assumptions. In my view, it was better used as a &quot;what assumptions would you have to believe to believe in a given valuation&quot; rather than a valuation approach per se. It can be helpful to know that you&#x27;d have to have untenable assumptions to justify a given valuation. In any case, I bet the DCF model generates lower values than the private markets are paying, so it&#x27;s only interesting to such companies in the public markets where you can act on your beliefs by going short.