Diskonttausmenetelmän

Diskonttausmenetelmä, often translated as the Discounted Cash Flow (DCF) method, is a valuation technique used to estimate the value of an investment based on its expected future cash flows. The core principle of the method is that money today is worth more than the same amount of money in the future due to its potential earning capacity. Therefore, future cash flows are "discounted" back to their present value using a specific discount rate.

The discount rate typically reflects the riskiness of the investment and the time value of money. A higher discount rate signifies greater risk or a higher opportunity cost, resulting in a lower present value for future cash flows. Conversely, a lower discount rate implies less risk and a higher present value.

To apply the DCF method, analysts first project the expected cash flows of an investment over a specific period. This projection often involves making assumptions about revenue growth, operating expenses, and capital expenditures. Following the explicit forecast period, a terminal value is usually calculated, representing the value of the investment beyond the forecast horizon. This terminal value is also discounted back to the present. The sum of all discounted future cash flows, including the discounted terminal value, provides the estimated intrinsic value of the investment.

The DCF method is widely used in corporate finance for valuing companies, projects, and financial assets. It is considered a fundamental valuation approach, although its accuracy is heavily dependent on the quality and realism of the underlying cash flow projections and the chosen discount rate.