Term
DCF (discounted cash flow)
A way to value a company by estimating the cash it will generate in the coming years and converting each of those amounts into what it is worth today with a discount rate. The result is only as good as its assumptions.
In pesos: If a business will hand you $110 MXN a year from now and you could earn 10% elsewhere, that $110 is worth $100 today. A DCF does that same calculation year after year.
Where to go deeper
2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.