In a discounted cash flow analysis, the discount rate is the depreciation of time during the valuation of money. In a nutshell, the discount rate tells us that money is worth more today than it is in ...

Discounted cash flow, or DCF, is a tool for analyzing financial investments based on their likely future cash flow. When an investment will cost more money to buy, generate less money in return, or ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

An investor can do the most thorough analysis of a company, poring over financial statements, reading tomes of research, consulting industry experts, and so forth. One can be completely convinced of a ...

DCF model estimates stock value by discounting expected future cash flows to present value. Using multiple valuation methods with DCF can enhance accuracy in stock evaluations. DCF's effectiveness is ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

When reviewing cash flow data for your small business, knowing the standard deviation can help you determine if the numbers are out of whack. Calculating standard deviation manually can be ...

Discounted Cash Flow (DCF) analysis is a technique for determining what a business is worth today in light of its cash yields in the future. It is routinely used by people buying a business. It is ...