Glossary

Glossary

Term Book Chapter Definition
Discounted Cash Flow (DCF) Corporate Finance Chapter 12: Mergers and Acquisitions A valuation method that estimates the intrinsic value of the target based on the present value of its projected cash flows.
Discounted Cash Flow (DCF) Venture Finance Chapter 10: Valuation of Start-ups This method projects the company’s future cash flows and discounts them back to their present value. It is less reliable for start-ups due to their unpredictable revenue streams and high failure rates.