discounted cash flow
- noun the calculation of the forecast return on capital investment by discounting future cash flows from the investment, usually at a rate equivalent to the company’s minimum required rate of return.
- noun a calculation of forecast sales of a product in current terms with reductions for current interest rates
- (written as Discounted Cash Flow)A flow of money over a time period in which each period's cash is adjusted by an appropriate discount factor to represent its (reduced) future value (fundamentally due to time preference). The present value of the flow is the sum of these discounted values over the period in question.