What is Discounted Cash Flow (DCF)?
What is Discounted Cash Flow (DCF)?

What is Discounted Cash Flow (DCF)?

Discounted Cash Flow (DCF) is a method used to determine the value of an investment or business based on its future cash flows, adjusted for the time value of money.

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In simpler terms, it’s about figuring out how much money an investment will make in the future but adjusting for the fact that money today is worth more than the same amount in the future.

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