Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...

Perhaps the best picture of a company's current finances, discretionary cash flow refers to the portion of revenue a company has left after all mandatory payments, such as wages, are paid, and all ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Being able to assess a company’s operating cash flow (OCF)—and how ...

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example, you ...

Intrinsic value helps find stock's true worth, unlike fluctuating market prices. DCF analysis estimates future cash flows to calculate a stock's intrinsic worth. Using P/E ratios or asset-based values ...