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discounted cash flow

Line breaks: dis|count¦ed cash flow

Definition of discounted cash flow in English:

noun

[mass noun] Finance
A method of assessing investments taking into account the expected accumulation of interest.
Example sentences
  • A discounted cash flow calculation takes into account the value of earnings in future years.
  • After all, goodwill is a noncash item, and most companies value assets based on discounted cash flow.
  • The risk-free rate is also the basis for corporations and other investors evaluating projects or potential acquisition candidates using discounted cash flow analysis.

Definition of discounted cash flow in:

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