Discounted cash flow

Discounted cash flow (DCF) is the sum of the projected cash flows from a future strategy, after revaluing each individual element of the cash flow in terms of its present worth using the cost of capital of the organization.

Definitions

According to the Corporate Strategy by Lynch (4th edition),

Discounted cash flow (DCF). The sum of the projected cash flows from a future strategy, after revaluing each individual element of the cash flow in terms of its present worth using the cost of capital of the organization.