# discounted cash flow

- /ˌdɪskaυntɪd 'kæʃ fləυ/
__noun__the calculation of the forecast return on capital investment by discounting future cash flows from the investment, usually at a rate equivalent to the company’s minimum required rate of return.Abbreviation**DCF**COMMENT: Discounting is necessary because it is generally accepted that money held today is worth more than money to be received in the future. The effect of discounting is to reduce future income or expenses to their ‘present value’. Once discounted, future cash flows can be compared directly with the initial cost of a capital investment which is already stated in present value terms. If the present value of income is greater than the present value of costs, the investment can be said to be worthwhile.

*Dictionary of banking and finance.
2015.*

### Look at other dictionaries:

**Discounted Cash-Flow**— (DCF) (dt. abgezinster Zahlungsstrom) beschreibt Verfahren zur Wertermittlung, insbesondere zur Unternehmensbewertung und zur Ermittlung des Verkehrswerts von Immobilien. Es baut dabei auf dem finanzmathematischen Konzept der Abzinsung (eng.:… … Deutsch Wikipedia**discounted cash flow**— (accounting) The present value of future estimated cash flows • • • Main Entry: ↑discount … Useful english dictionary**Discounted cash flow**— Excel spreadsheet uses Free cash flows to estimate stock s Fair Value and measure the sensibility of WACC and Perpetual growth In finance, discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using the concepts… … Wikipedia**Discounted Cash Flow**— Die Artikel Kapitalwert und Discounted Cash Flow überschneiden sich thematisch. Hilf mit, die Artikel besser voneinander abzugrenzen oder zu vereinigen. Beteilige dich dazu an der Diskussion über diese Überschneidungen. Bitte entferne diesen… … Deutsch Wikipedia**discounted cash flow**— A technique or process for valuing a financial instrument by applying a discount rate (or a series of discount rates) to calculate a present value of each future interest and principal cash flow expected from a financial instrument. The sum of… … Financial and business terms**discounted cash flow**— Fin the discounting of the projected net cash flows of a capital project to ascertain its present value. The methods commonly used are: yield, or internal rate of return (IRR), in which the calculation determines the return in the form of a… … The ultimate business dictionary**discounted cash flow**— DCF A method used in capital budgeting, capital expenditure appraisal, and decision appraisal that predicts the stream of cash flows, both inflows and outflows, over time and discounts them, using a cost of capital or hurdle rate, to present… … Accounting dictionary**discounted cash flow**— DCF A method used in capital budgeting, capital expenditure appraisal, and decision appraisal that predicts the future stream of cash flows, both inflows and outflows, over time and discounts them, using a cost of capital rate or hurdle rate, to… … Big dictionary of business and management**discounted cash flow**— noun the current value of all the future cash to be generated by a development project … Australian English dictionary**discounted cash flow**— /ˌdɪskaυntɪd kæʃ fləυ/ noun the calculation of the forecast return on capital investment by discounting future cash flows from the investment, usually at a rate equivalent to the company’s minimum required rate of return. Abbr DCF … Marketing dictionary in english