I started valuating company based on their free cash flow by using DCF valuation.But for some companies i came across negative free cash flow for all years. How can we evaluate company with negative cash flow using DCF valuation? and if not then what is another method for valuating such companies? (here valuation mean to calculate intrinsic value )
There are alternative approaches, for example a company can have a significant balance sheet but still be making a loss, in that instance it should be worth at least the net balance sheet value as by disposing of all assets.