Discounted cash flow method

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Discounted cash flow method (alternatively known as DCF method) is a method of valuing a business that involves the application of capital budgeting procedures to an entire firm rather than to a single project.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Discounted cash flow method (DCF method). A method of valuing a business that involves the application of capital budgeting procedures to an entire firm rather than to a single project.

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