.svg)
Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows. The idea is that money today is worth more than the same amount in the future due to its earning potential.
In the DCF method, you estimate future cash flows and then discount them back to the present day using a discount rate, typically the weighted average cost of capital. This gives you an estimate of what the investment is worth today. DCF analysis can be complex and based on various assumptions, so it's important to use it as one tool in a suite of valuation methods.
Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.
We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.
Get the peace of mind that comes from partnering with our experienced finance team.