Discounted Cash Flow

Definition of "Discounted cash flow"

Simone  Pietrunti Realtor-Associate® real estate agent
Simone Pietrunti Realtor-Associate®, Real Estate Agent Christie's International Real Estate

A method to estimate the value of a real estate investment, which emphasizes after-tax cash flows and the return on the invested dollars discounted over time to reflect a discounted yield. The value of the real estate investment is the present worth of the future after-tax cash flows from the investment, discounted at the investors desired rate of return. See also discounted ash flow (DCF) techniques.


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