Discounted future benefits valuation methods, often
called discounted cash flow methods, are at once,
theoretically sound, fairly straightforward in terms of
concept, widely used, and widely misunderstood.
Appraisers use two different sub-methods of the DFB
method, equity methods (DCF or DNI, which project
measures of earnings available to the equity holders of
a business) and total capital measures (DFNCF or DFNI,
which project earnings available to the equity and debt
holders, i.e., to the total capital of the enterprise).