1. The first step in doing DCF valuation is to understand the value drivers of the company in order to see whether the management projections are solid and then we adjust some of them with our reasonable assumptions.2. Based on the assumptions, we can project the capital cash flows (CCF). CCFs measure all of the post-tax cash generated by the assets, then the cash flows include all of the cash available to capital providers, including the interest tax shields.3. As the interest tax shields are included in the cash flows, the appropriate discount rate (r0) is pre-tax and corresponds to the riskiness of the assets. --> r0 = rf + A * (rM - rf)4. Terminal Value can be calculated using the Cash-Flow-in Perpetuity. There are two required inputs, which are a cash flow of the last forecasted year and a future growth rate to infinity (Perpetual Growth Rate). --> Terminal Value = 5. The projected CCFs and the terminal value are discounted back by r0 to the present. The summation of these two discounted values is the enterprise value. Note: The value of Yellow Book USA must be converted from US Dollar to Pound Sterling.