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Good Day - I am currently developing a DCF Model to determine FV, PV, terminal value, and enterprise value. It works well for companies with positive historic growth (assuming the inputs are correct). I have been looking at a company with negative cash flow and having a hard time modeling negative cash flow. It is a young company which is why I am looking at it.

If people could provide some insight on methods to determine future value each year, terminal, and enterprise value.

For now what I have done for future cash flow calcs is assumed a crazy growth rate and the following equation

If previous year cash flow is negative
Future Value = Previous Year FCF - Previous Year FCF * Growth Rate

in the above calculation, the previous year FCF is negative.

IF previous year cash flow is positive
Future Value = Previous Year FCF (1+Growth Rate)


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