What key data sources can aid in constructing a DCF model?

To effectively construct a Discounted Cash Flow (DCF) model, utilizing company financial statements and market research is crucial. Financial statements, which include the balance sheet, income statement, and cash flow statement, provide detailed insights into a company's historical performance, revenue growth, operating expenses, and cash flows. These are foundational components of the DCF model, as they allow analysts to project future cash flows based on past performance and industry standards.

Market research complements this data by offering insights into industry trends, competitive positioning, market size, and economic factors that may impact future growth and profitability. This information helps analysts make informed assumptions about growth rates, discount rates, and other critical variables that feed into the DCF calculations.

Other options, while they may provide some insights, do not offer the comprehensive, structured data necessary for a robust DCF analysis. Company websites can provide general information but lack in-depth financial data. Social media trends and individual investor opinions might give hints about market sentiment but are not reliable sources for the concrete financial data needed to construct a solid model. Therefore, the combination of company financial statements and market research stands out as the most effective approach for building a DCF model.