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 ...

Discounted Cash Flow analysis is one of the primary valuation methods. Seeking Alpha authors should understand the strengths and weaknesses of a DCF model and best practices. Here we look at resources ...

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 ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Thomas J. Brock is a CFA and CPA with more than 20 years of ...

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.

When reviewing cash flow data for your small business, knowing the standard deviation can help you determine if the numbers are out of whack. Calculating standard deviation manually can be ...

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 ...