Discounted cash flow analysis (DCF)

{
  "id": "MLC-T-INS-001185",
  "term": "Discounted cash flow analysis (DCF)",
  "field": "Insurance and risk management",
  "definition": "A valuation method that estimates the value of an investment based on its expected future cash flows, discounted back to their present value. This technique accounts for the time value of money, recognizing that a dollar today is worth more than a dollar in the future. The discount rate used reflects the risk and opportunity cost associated with the investment.",
  "abbreviation": "DCF",
  "url": "https://mlchart.com/terminology/insurance/discounted-cash-flow-analysis-dcf/"
}