What is discounted cash flow?
A multi-period valuation that projects cash flows over a hold period (typically 5–10 years), includes a terminal sale (reversion), and discounts everything to present value at the investor’s required rate of return.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.