Discounted Cash Flow (DCF)
Definition of 'Discounted Cash Flow (DCF)'
Discounted Cash Flow (DCF), is a method used by analysts and investors to examine the appeal of an investment opportunity, which utilizes future free cash flow projections. Those projections are discounted, or adjusted to account for the time value of money, in order to establish the value of an investment in today’s dollars (present value, or PV).









