Estimate future free cash flows
Choose a forecast period
Select a discount rate
Calculate the present value of forecast cash flows
Estimate terminal value
Discount terminal value to present value
Add present values to get enterprise value
Subtract debt and add cash to get equity value
Divide equity value by shares outstanding
Compare intrinsic value per share to market price
Use a margin of safety before investing
Cross-check with other valuation methods such as P/E, P/B, and dividend discount model