Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Discounted Cash Flow Method
« Back to Glossary IndexCategory: Business Valuation
The Discounted Cash Flow Method is one of the methods under the income approach applied by business valuators in estimating the fair market value of a business. The fundamental basis of this method is based on the premise of value that the business is a going concern and will be in operation well into the future. Based on this premise, the fair market value of a business draws from forecast cash flows which are discounted into the present by a discount rate, the Weighted Average Cost of Capital (WACC).
« Back to Glossary IndexAcronym:
DCF
French Translation: