Discounted Cash Flow
/ˈdɪskaʊntɪd kæʃ floʊ/
Definitions
- (n.) A valuation method used to estimate the value of an investment based on its expected future cash flows, discounted to present value using a discount rate.
The court accepted the discounted cash flow analysis as evidence for determining the business's fair market value.
Forms
- discounted cash flow
Related terms
See also
Commentary
Primarily a financial valuation technique frequently applied in legal contexts such as mergers, acquisitions, and litigation involving economic damages.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.