DCF valuation

Discounted Cash Flow (DCF) valuation is a financial method used to estimate the value of an investment based on its expected future cash flows. The idea is to project how much money the investment will generate in the future and then convert that future cash into its present value using a discount rate. This discount rate reflects the risk and time value of money—essentially, money now is worth more than the same amount in the future. By summing these present values, investors can make informed decisions about the worth of an investment today.