What is discount rate in cash flow analysis
Discounted Cash Flow Definition: In Finance, the method of discounted cash flow, discounted cash flow or discounted bottoms cash flow (DCF for its acronym) is used to evaluate a project or an entire company.DCF methods determine the present value of future cash flows discounting them at a rate that reflects the cost of capital contributed. Definition: Discounted Cash Flow (DCF) analysis aims to estimate the present value of the expected future returns on an investment.If investors know the present value of their future returns, they can determine if a stock is overvalued, undervalued, or fairly valued.