Glossary
Discounted Cash Flow (DCF)
Discounted cash flow is a valuation method that estimates what an investment or business is worth today by projecting its future cash flows and discounting each one back to present value. The discount rate captures both the time value of money and the risk that those cash flows may not materialise. It is one of the main approaches in a formal company and project valuation, and is often cross-checked against simpler market-based methods.
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