Glossary

Discount Rate

The interest rate used in a discounted cash flow (DCF) analysis to determine the present value of a series of future cash flows.

See Also

Discounted cash flow (DCF).

Tips

Discounted cash flow is not commonly used in M&A transactions due to the difficulty of predicting future cash flows.

Related Resources

Business Valuation Methods in a Nutshell

Is there a difference between an appraisal and a valuation?

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now