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 ...

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 ...

There are many methods to estimate the value of a company, but one of the most fundamental and frequently used is Discounted Cash Flow (DCF) analysis. The general idea behind the method is this: the ...

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 ...

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.

Rich White is an experienced financial writer and the former editor of Financial Planning magazine. He has also authored several books. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

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 ...

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 ...

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 ...