The goal of this paper is to define and examine the approaches using cash flow for company valuation. An insight is given to cash flow as a part of the financial statement according to the International Accounting Standard 7 Cash Flow Statement (IAS 7). The implications of the theoretical approach and the Discounted Cash Flow (DCF) valuation method are presented and applied to INA PLC, the biggest Croatian oil company, and the method’s pros and cons are analyzed. Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) are defined and employed in the formula of the DCF model. During the application of the DCF, FCFF and FCFE methods, cash flow statement according to IAS 7 is used as source of model variables. Other methods are presented and compared to the DCF: in particular the Economic Profit Model and the Adjusted Present Value. Static ratios using cash flow are shown as tools for valuation. An overview of possible cash flow statements manipulation methods is given as a warning for a potential distortion of model results. The outlined theoretical and practical implications of the application of cash flow models in Croatia can be used to improve their understanding and usage and to predict their potential future development.