GlossaryDcf method (discounted cash flow)

What means DCF method (discounted cash flow)?

The DCF method is a real estate valuation approach that assesses property value based on expected cash flows. This method accounts for all income and expenses associated with the property typically over a period of 10 to 20 years. Future cash flows are then discounted to present value using the required rate of return, known as the Internal Rate of Return (IRR).