According to @QCompounding, Yogesh Jangid shares a discounted cash flow (DCF) valuation framework to estimate intrinsic value by projecting future free cash flows and discounting them to the present. source: @QCompounding and Yogesh Jangid In standard practice, DCF entails forecasting free cash flow to the firm or equity, selecting an appropriate discount rate such as WACC, estimating a terminal value, and summing present values to get enterprise or equity value. source: CFA Institute Traders and investors use DCF outputs as fair value anchors and run sensitivity analysis on discount rates and terminal growth to quantify upside and downside for entry and exit decisions. source: Aswath Damodaran, NYU Stern The same DCF process applies to any cash-flowing firm, including listed crypto businesses like exchanges and BTC mining companies, supporting valuation-aligned positioning across cycles. source: Aswath Damodaran, NYU Stern

According to Compounding Quality, Return on Invested Capital (ROIC) is a crucial metric for evaluating a company's capital efficiency. Companies with high ROIC and ongoing reinvestment tend to experience exponential growth, creating shareholder value when ROIC exceeds the Weighted Average Cost of Capital (WACC). Consistent ROIC is also seen as an indicator of a competitive moat. For crypto traders, monitoring companies with strong ROIC fundamentals can signal broader market stability and potentially influence related digital asset flows, as institutional investors often rotate capital between high-performing equities and crypto markets (source: Compounding Quality, Twitter, May 20, 2025).

According to WallStreetOasis, their WACC Cheat Sheet provides a clear and actionable breakdown of the Weighted Average Cost of Capital, highlighting calculation methods and key factors for traders to consider when evaluating investment opportunities. This resource is especially useful for crypto market participants seeking to assess project or company valuations as institutional capital flows increase. Accurate WACC analysis aids in comparing risk-adjusted returns between traditional equities and digital assets, supporting informed trading decisions (Source: WallStreetOasis via Twitter, May 13, 2025).

According to @IFB_podcast, understanding the Weighted Average Cost of Capital (WACC) is essential for assessing risk and valuation in both traditional equity and emerging crypto markets. WACC represents a company's average cost of capital from both debt and equity sources, directly influencing investment decisions and pricing strategies. For crypto traders, WACC can signal how institutional capital allocates funds and evaluates blockchain projects, impacting token valuations and long-term price action (source: @IFB_podcast, Compounding Quality tweet May 10, 2025).