Definition, Meaning & Synonyms
dcf
Abbreviation / Financial Term
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Definition
DCF stands for Discounted Cash Flow, a financial valuation method used to estimate the value of an investment based on its expected future cash flows.
Examples
- The DCF method is commonly used in financial analysis to assess the value of a company.
- Using DCF, investors can determine if an investment is worth pursuing based on projected earnings.
- Many financial analysts prefer DCF over other valuation methods due to its focus on cash generation.
Meaning
It reflects the present value of expected cash flows, adjusted for the time value of money.
Synonyms
- Discounted Cash Flow Analysis
- Cash Flow Valuation
- Present Value Calculation
