define discounted cash flow value
What is a DCF Valuation? Discounted cash flow (DCF) analysis is a method of valuing the intrinsic value of a company (or asset). In simple terms, discounted cash flow tries to work out the value today, based on projections of all of the cash that it could make available to investors in the future. It is described as discounted cash flow because of the principle of time value of money (i.e. cash in the future is worth less than cash today).