While the discounted cash flow (DCF) methodology is the most rigorous and financially sound for business valuation, it does have several significant limitations, namely:

1. Extreme sensitivity to certain input assumptions.
2. Uncertainty in calculating the terminal value of the company.

The valuation of a company is driven by projected future cash flows. If that is the case, how can there be such a large range of values for the same company? The answer is that the value of a company is unique to each potential buyer.