DCF analysis

Discounted Cash Flow (DCF) analysis is a valuation method used to estimate a company's worth by projecting its future cash flows—money the company is expected to generate—and then adjusting those projections to their present value using a discount rate. This process accounts for the idea that future cash flows are less certain and less valuable today. By summing these adjusted cash flows, DCF provides an estimate of the company's current value based on its expected ability to generate cash in the future. It’s a fundamental tool for investors and business owners to assess investment opportunities.