Discounted Cash Flow - Revision history

Dirkjan at 19:24, 27 August 2020

2020-08-27T19:24:11Z

Dirkjan at 18:38, 27 August 2020

2020-08-27T18:38:42Z

Dirkjan: Created page with "In Principles of Corporate Finance ''Discounted Cash Flow'' is defined as future Cash Flows multiplied by Discount Factor|D..."

2020-08-25T07:21:56Z

Created page with "In Principles of Corporate Finance ''Discounted Cash Flow'' is defined as future Cash Flows multiplied by Discount Factor|D..."

New page

In [[Principles of Corporate Finance|Principles of Corporate Finance]] ''Discounted Cash Flow'' is defined as future [[Cash Flow|Cash Flow]]s multiplied by [[Discount Factor|Discount Factor]]s to obtain [[Present Value|Present Value]] ]. Cash flows are discounted for two reasons:

1) A dollar today is worth more than a dollar tomorrow
2) A safe dollar is worth more than a risky one.

A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.

Source: http://www.investopedia.com/terms/d/dcf.asp
[[Category:finance]]

[[Category:M12]]

[[Category:Principles of Corporate Finance]]

[[Category:Term]]

← Older revision		Revision as of 18:38, 27 August 2020
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−	~~In [[Principles of Corporate Finance\|Principles of Corporate Finance]] ''~~Discounted Cash Flow~~'' is defined as future [[Cash Flow\|Cash Flow]]s multiplied by [[Discount Factor\|Discount Factor]]s to obtain [[Present Value\|Present Value]] ]. Cash flows are discounted for two reasons:~~	+	Discounted Cash Flow
−
−	~~1) A dollar today is worth more than a dollar tomorrow~~
−	~~2) A safe dollar is worth more than a risky one.~~
−
−	A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.
−
−	~~Source: http://www.investopedia.com/terms/d/dcf.asp~~
	[[Category:finance]]		[[Category:finance]]

← Older revision		Revision as of 19:24, 27 August 2020
Line 1:		Line 1:
−	Discounted Cash Flow	+	In [[Principles of Corporate Finance\|Principles of Corporate Finance]] ''Discounted Cash Flow'' is defined as future [[Cash Flow\|Cash Flow]]s multiplied by [[Discount Factor\|Discount Factor]]s to obtain [[Present Value\|Present Value]] ]. Cash flows are discounted for two reasons:
		+
		+	1) A dollar today is worth more than a dollar tomorrow
		+	2) A safe dollar is worth more than a risky one.
		+
		+	A valuation method used to estimate the attractiveness of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (most often using the weighted average cost of capital) to arrive at a present value, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.
		+
		+	Source: http://www.investopedia.com/terms/d/dcf.asp
	[[Category:finance]]		[[Category:finance]]