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.

Discounted Cash Flow (DCF)

Definition

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?