Discounted Cash Flow

Definition:

A valuation method that is used to evaluate the potential of an investment opportunity. Discounted Cash Flow analysis uses future cash flow projections and discounts them (often using the weighted average cost of capital) to arrive at present value. If the value arrived at through the analysis is higher than the current price of the investment, it may be a good opportunity.

Return to Glossary

Your complete M&A platform

Datasite provides you one end-to-end platform that supports you across all stages of the deal.