Glossary

Discounted Cash Flow (DCF)

A valuation method that measures the value of the future expected net cash flows of a business in present-day dollars.

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?

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