Part 6/13:
Cash Flow Estimation: Calculating the free cash flow generated by these streams over the next 10 years.
Discounting: Applying a discount rate (e.g., 7%) to these future cash flows to obtain present value.
In the Tesla example, the model produces a "fair value" of approximately $713 per share in August 2025. Since Tesla trades at roughly $360, this indicates the stock is currently undervalued—offering around 100% upside if predictions hold true.