Discounted cash flow

Abstract: This page refers to the discounted cash flow (DCF) regarding projects and investments. Discounted Cash Flow (DCF) is a method used to estimate the value of an investment or a project by projecting its future cash flows and then discounting them back to their present value. The reason for using DCF is that an investment's value is equal to the sum of its expected future cash flows, discounted at an appropriate rate to account for the time value of money and the investment's level of risk.

Sources: https://www.investopedia.com/terms/d/dcf.asp https://www.investopedia.com/terms/c/cashflow.asp https://www.streetofwalls.com/finance-training-courses/investment-banking-technical-training/discounted-cash-flow-analysis/