Cash Flow Analysis assesses the inflows and outflows of cash in a business or investment over a specific period, aiding in financial strategy and decision-making.
Discounted Cash Flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows. This technique incorporates the time value of money by discounting the future cash flows to present value.
Discounted Cash Flow (DCF) is a financial valuation method used to determine the value of an investment based on its expected future cash flows, which are discounted to reflect their present value. This technique takes into account the time value of money.
Discounted Present Value (DPV) is the present value of expected future cash flows, discounted at a specific rate to account for the time value of money. It's often used to evaluate the attractiveness of an investment.
Discounting is the process of estimating the present value of an income stream by reducing expected cash flow to reflect the time value of money. It is the opposite of compounding, and mathematically, they are reciprocals.
A technique used in the appraisal of mortgaged income property to estimate its present value by discounting the future annual cash flow and expected resale proceeds.
The Income Approach is one of three methods used to appraise real estate value, primarily utilized for properties that generate consistent income, such as apartments, office buildings, hotels, and shopping centers.
Terminal value represents the remaining value or expected remaining value of a property at the end of a certain period, such as an income projection period. It is an essential component in financial modeling and valuation, like Discounted Cash Flow (DCF) analysis, to determine the future worth of an asset.
Yield Capitalization is a method used in real estate to derive the lump sum value of an income stream by a discounted cash flow (DCF) approach. This method is deemed more sophisticated compared to Direct Capitalization as it factors in the timing of cash flows and anticipates growth or decline in the asset value.
