Discounted Cash Flow (DCF) Excel Template

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Discounted cash flow (DCF) is a method used to estimate the value of an investment based on future cash flow. The DCF formula allows you to determine the value of a company today, based on how much money it will likely generate at a future date.

To do this, DCF finds the present value of future cash flows using a discount rate. Once you have the PV it can then be used to evaluate the investment to see whether it is a wise decision.