discounted cash flow
Future money today
Discounted cash flow is a method of valuing an investment by estimating its future cash flows and adjusting them to reflect their present value—money received later being worth less than money received now.
The technique is fundamental in finance for assessing stocks, bonds, projects, and businesses: The discounted cash flow analysis suggested the company was overvalued.
- inflation rateSpeed of rising costs
- present valueCurrent equivalent of future sum
- weighted averageMean adjusted by significance
- hurdle rateMinimum required return percentage
- rate of returnInvestment profit percentage
free cash flow · future earnings · interest rate · compounding · net present value · cost of capital · number crunching · financial modeling · intrinsic value · fair value · perpetuity · economic cycles · industry trends · risk assessment · Excel · market volatility · interpolation · earnings
- investingstocks, stock, bonds, investing, investor
- intangible assetsintangible assets, patent, copyright, trade secret, brand
- Asset Valuationasset value, book value, fair value, fair market value, market value
- Financial Modelspro forma, forecast model, financial modeling, forecast, forecasting
- investment analysistechnical analysis, valuation, financial modeling, investment research, stock valuation
- IP valuationintangible assets, fair market value, licensing fees, remaining life, useful life