Discounted Cash Flow (DCF) is one of the valuation methods used to estimate the value of an investment based on its future cashflows.
The output of valuation is the intrinsic value of a stock. The intrinsic value is compared with the current market value
1) If Intrinsic value The stock is Overvalued
2) If Intrinsic value > Market value –> The stock is Undervalued
The DCF valuation can be used to asses how the market has Overvalued / Undervalued a company and by what percentage