This is known as discounted cash flow, or DCF, analysis. To illustrate, say your friend Steve offered you £1,000 today or the promise of £1,000 five years from now. You’d be foolish (lowercase ...
Ivashina, Victoria. "Discounted Cash Flows (DCF) Valuation Methods and Their Application in Private Equity." Harvard Business School Technical Note 221-012, August 2020.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can ...
However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail ...