I have a basic question that i am having some trouble comprehending. i am trying to do a DCF valuation using FCFE. I picked up a company (in this case it was SLB) and put relevant data and calculated FCFE from 2000 to 2007. say i assumed that FCFE will increase at 13% for next 10 years and then 3% to perpetuity after that. Now I am having the problem of discounting these FCFE. I have data upto 2007. we dont have 2008 data out yet (i am getting data from 10-K). do i discount 2008 projected data with (1+discount rate)^1 and 2009 data with (1+discoun rate)^2 or do i discount 2009 data with (1+discount rate)^1 and 2010 data with (1+discoun rate)^2 I would really appreciate any help i can get.

To be theorectically correct you would forecast FCFE for the remainder of the year and then discount it approximately 6 months or .5 years and then discount 2009 1.5 years and so forth.