In a discounted cash flow analysis, the discount rate is the depreciation of time during the valuation of money. In a nutshell, the discount rate tells us that money is worth more today than it is in ...

Discounted cash flow, or DCF, is a tool for analyzing financial investments based on their likely future cash flow. When an investment will cost more money to buy, generate less money in return, or ...

A discounted cash flow, or DCF, analysis measures the value of a business or project, such as a new factory for your small business. This value equals the sum of all of the project's future annual ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

DCF model estimates stock value by discounting expected future cash flows to present value. Using multiple valuation methods with DCF can enhance accuracy in stock evaluations. DCF's effectiveness is ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The discount rate used in valuation calculations is incredibly important. A low discount rate will give you a high equity valuation as cash flows will be worth more in the future than they are today.

What’s an RIA really worth? Getting an answer, it seems, depends on what yardstick you use to measure it. Discounted cash flow has recently become the new de facto standard. But untangling how that ...

Discounted Cash Flow (DCF) analysis is a technique for determining what a business is worth today in light of its cash yields in the future. It is routinely used by people buying a business. It is ...