When would you not use a DCF in a Valuation?

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We do not use a DCF if the company has unstable or unpredictable cash flows (tech or
bio-tech start-up) or when debt and working capital serve a fundamentally different role.
For example, banks and financial institutions do not re-invest debt and working capital is
a huge part of their Balance Sheets – so you wouldn’t use a DCF for such companies.