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In this article the author discusses the advantages of using the discounted cash flow business valuation method. He notes that the number one advantage of this method is its simplicity, adding that in business the simple approaches are often overlooked. He asserts that this method works best for small to mid-sized nonpublic companies. He discusses how by using a combination of prior cash flow statements, tax returns, and business and economic assumptions you can predict future cash flows and yield solid valuations. He also provides a four-step process that walks the reader through the process and teaches them to make their own valuations.