Definition of discounted cash flow in US English:

discounted cash flow


  • A method of assessing investments taking into account the expected accumulation of interest.

    • ‘It provides calculative techniques, such as discounted cash flow and capital budgeting, that serve to focus decision making.’
    • ‘The risk-free rate is also the basis for corporations and other investors evaluating projects or potential acquisition candidates using discounted cash flow analysis.’
    • ‘A discounted cash flow calculation takes into account the value of earnings in future years.’
    • ‘After all, goodwill is a noncash item, and most companies value assets based on discounted cash flow.’
    • ‘Businesses use discounted cash flow analysis to evaluate investment options.’