What is Discounted Cash Flow? (DCF)

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Discounted Cash Flow > Forum > What is Discounted Cash Flow? (DCF)

What is Discounted Cash Flow? (DCF)
Naveed, Entrepreneur, Pakistan, Member
DCF shows the future cash inflows at a discounted rate.
In simple terms, DCF tells us about how much our future inflows are worth at the present.
Background: the money that we have today will lose its value in the future. The value of future inflows will be less than what they worth today. That's why we use the concept of discounted cash flows.
 

     
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