Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Suzanne is a content marketer, writer, and ...

Money receivable in the future is worth less than money received immediately. If you have £1 now and could invest it at an interest rate of 5% in one year you would have £1.05. This means that the ...

One of the most widely-accepted and utilized methods of valuing a business in today's world of modern finance is discounted cash flow (DCF) analysis. Obviously, in order to calculate valuation, ...

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 ...