{"id":46435,"date":"2025-02-17T15:30:28","date_gmt":"2025-02-17T08:30:28","guid":{"rendered":"https:\/\/bestarion.com\/us\/?p=46435"},"modified":"2025-02-17T15:36:11","modified_gmt":"2025-02-17T08:36:11","slug":"discounted-cash-flow-dcf","status":"publish","type":"post","link":"https:\/\/bestarion.com\/us\/discounted-cash-flow-dcf\/","title":{"rendered":"Discounted Cash Flow (DCF) Explained: Formula, Examples & How It Works"},"content":{"rendered":"\t\t
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Discounted Cash Flow (DCF)<\/strong> analysis is a powerful valuation method used to estimate the value of an investment based on its expected future cash flows. It is widely used in finance for business valuation, investment decisions, and capital budgeting. This guide provides an in-depth explanation of the DCF method, its formula, and practical examples.<\/p>

<\/span>What is Discounted Cash Flow (DCF)?<\/span><\/h2>

DCF is a financial valuation method that determines the present value of an investment based on its projected future cash flows, discounted back to the present using an appropriate discount rate. The fundamental principle of DCF is that money received today is worth more than the same amount received in the future due to the time value of money (TVM).<\/p>

\"Discounted<\/p>

<\/span>The DCF Formula<\/span><\/h2>

The basic formula for DCF is:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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