In a DCF set-up, the analyst can easily modify input variables such as growth (from year to year), reduction in costs, increase in operational efficiency (margins) etc. and compute the change in value of the target in the future.

In a DCF set-up, the analyst can easily modify input variables such as growth (from year to year), reduction in costs, increase in operational efficiency (margins) etc. and compute the change in value of the target in the future.