Our fair value estimate is 3.0% higher than Sports Toto Berhad's analyst price target of RM1.57 Today we will take advantage of the Discounted Cash Flow (DCF) model for this purpose. We assume companies with shrinking free cash flow will slow their rate of shrinkage. In the first stage we need to estimate future cash flows to the business over the next ten years. The second stage is also known as Terminal Value, which results in the Total Equity Value.