Answer / Ravi Kumar Ravi

Discounted Cash Flow (DCF) is a method used to estimate the value of an investment or project. It calculates the present value of expected future cash flows by discounting them back to their current value using a discount rate. This process involves several steps: 1. Forecasting free cash flows for multiple years, 2. Adjusting these cash flows for growth or decline, 3. Discounting the cash flows to their present value using a suitable discount rate, and 4. Summing up all discounted cash flows to find the DCF value.

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