The discount rate is by how much you discount a cash flow in the future. For example, the value of $1000 one year from now discounted at 10% is $909.09. Discounted at 15% the value is $869.57.

While Buffett accepts the principle of discounting cash flows, Charlie Munger says that he has never seen him perform a formal DCF analysis. Munger: Warren often talks about these discounted cash ...

Discounted Cash Flow ... Therefore, looked at the other way, $100 received a year from now is worth only $96.15 today if the discount rate is 4 percent (96.15 × 1.04 = 100).

For example, assume a company's cash flow valuation is $300,000, the discount rate is 9 percent and you want to compound the valuation for a 10-year holding period. Add 1 to the discount rate.

Discounting a future cash flow expresses future returns in today's dollars. This allows a fair comparison between initial business expenses and your expected or realized returns. As an example ...

Those who have spent recent years investing through the rear-view mirror have scored a victory over the ivory tower and some ...

Dynamic discounting is really a win-win. There is value to both sides of purchasing relationships, and it's not just one imposing their will on the other in order to make their company better at ...

"Discount rate" has two distinct definitions. It can refer to the interest rate the Federal Reserve charges banks for short-term loans, but it's also used in future cash flow analysis.