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Discounted Cash Flow and Valuation

Discounted Cash Flow and Valuation
Discounted Cash Flow and Valuation Discounted cash flow analysis uses multiple years of income to provide a more accurate measure of value. Capitalization estimates market value based on theoretical behavior of all potential buyers. However, the value of a property to a specific investor may differ from general market value for a variety of reasons–in this case, the discount rate is specific to the particular investor.