In a discounted cash flow analysis, the discount rate is the depreciation of time during the valuation of money. In a nutshell, the discount rate tells us that money is worth more today than it is in ...

Open Sources is an Author Experience series that focuses on free investment-related tools from across the Web. (Estimating the present value of a future stream of cash flows is essential to investing.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...

Discounted cash flow valuations are one of several corporate finance valuation models that investment professionals use to determine the value of stocks. Proponents of this valuation method argue that ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Money receivable in the future is worth less than money received immediately. If you have £1 now and could invest it at an interest rate of 5% in one year you would have £1.05. This means that the ...

Discounted Cash Flow analysis is one of the primary valuation methods. Seeking Alpha authors should understand the strengths and weaknesses of a DCF model and best practices. Here we look at resources ...