The DCF valuation model considers the present value of future cash flows of the business to be the driver of value. Could there be more that must be considered when arriving at the value of your business using the DCF valuation model?
After you have arrived at the value of a firm using the DCF valuation, you must consider all potential liabilities. Potential liabilities include pending cases, potential lawsuits, underfunded liabilities, penalties/fines under arbitrage, etc. that the company could be responsible for. Here you need to estimate a potential dollar value for these liabilities as well as a probability of loss to arrive at the value of liabilities to be subtracted from your operating value from the DCF.
Further, your company has a majority holding in another company, the company would have consolidated the subsidiary’s financials into the company’s financials. You should remove the value of the minority stake from the DCF valuation.