[mikesabat]

In theory, but the whole point of this article is that future cash flow will be exactly $0 when there are no dividends paid. There is nothing concrete to which you can actually tie the current value.

Therefore, the price is what someone is willing to pay in hopes that when they but it now there will be someone willing to pay more in the future.

[furiouslol]

Future cash flow will not be $0 if there are no dividends paid. If a company has revenue, it has cash coming in and out and hence it has cash flow.

In any case, a company will be worth more if it doesn't pay out dividends since there is no cash outflow from the company.

With a DCF model, you are evaluating the cash inflow and outflow from the company perspective, not the shareholder perspective.

There is nothing concrete to which you can actually tie the current value.

There is - the cashflows of the company.

Imagine a company with net cashflow of -10 million for the first 5 years and +10 billion thereafter. You just discount back the cashflow and you'll get the intrinsic value of the company.