This approach to valuation is also referred to as a discounted cash flow analysis or discounted cash flow approach.

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The discounted cash flow analysis is a key component of the Income approach to valuation, which is used to estimate the present value of future cash flows accruing to a business or asset. The Market approach involves finding comparable companies or assets and using their market values to estimate the value of the business or asset being valued. The Cost approach involves adding up the cost of all the inputs required to create a reproduction of the asset or business being valued. The Synergistic approach involves identifying the value of combining two or more companies or assets. The Pratt's CPS approach involves calculating the value of a business based on its expected future cash flows and the required rate of return.

This Approach to Valuation Is Also Referred to as a Discounted