What is discount rate?Discount Rate

The annual rate used to convert future money into today's value, reflecting the cost of capital and risk; the higher it is, the lower the present value.

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Fundamental Analysis
Discounted Cash Flow (DCF)
What's a company worth? Take all the free cash flow it will generate in the future, translate it back into today's money, and add it up.

Related terms

DCF
terminal value
intrinsic value (company)
margin of safety

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