Models for business valuation appraisal signify maturity and perfect of business valuation appraisal methods.As a future-oriented dynamic model of business valuation, DCF includes many uncertain variables, such as future free cash flow, terminal value, discount rate, and discount period. All these variables need estimate and forecast. However, the forecast needs the support of data and evidence, more scientific statistical tools and mathematic models besides financial technologies. This paper, which discusses the appraisal method of business valuation------discounted cash flow, focuses on the conceptual analysis. In view of the current status of business management, esp. financial management, there still needs a long period of time to put business valuation technology into practice. Conception introduction is needed. This will lay scientific theoretic foundation for the improvement of business management in the future.
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