Business valuation (BV) is typically based on one of three methods: the income approach, the cost approach or the market (comparable sales) approach. Among the income approaches is the discounted cash flow methodology that calculates the net present value (NPV) of future cash flows for a business. As an alternative to the more abbreviated income capitalization approach, this methodology is more relevant where future operating conditions and cash flows are variable or not projected to be materially consistent with current performance levels.