The article contains guidance on the application of the methodology of the income approach to business (enterprises) with the analysis of best practices for each of the main stages of the methodology application. The article has an explicit practical focus as it considers only those tools and methods which are applicable on everyday basis. Besides the structured knowledge in the field of business valuation, one of the most commonly used valuation techniques is discounted cash flow method; the authors highlight problematic issues of methodology and advise how to avoid possible mistakes.