Discounted Cash Flow (DCF) Analysis is a method of the future business or project valuation using the concepts of the time value of money. A DCF analysis is to determine the present value of future cash flows (future free cash flow projection and discount it). All future cash flow is estimated and discounted by using cost of capital to give its present value. If DCF analysis value comes higher than the current cost of the investment, the opportunity is a positive. (Refer to the DCF Analysis Method)
Related Definitions in the Project: The Economic Reviews
