QUICK TECHNICAL QUESTION (Save me!)

A DCF model values a company based on it's cash flows.

A 3-statement model (AKA, an Operating model), gives a projection of a company's financial statements.

How do a 3-statement model and a DCF model relate? Is it such that you use a 3-statement model to get a projection of a company's cash flows, and then plug those projected cash flows into a DCF to get a valuation?

 

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