Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Discount Rate

Definition

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.

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