Discounted Cash Flow

Discounted Cash Flow (DCF) is a valuation method that estimates the present value of future income, adjusted for time and risk. It’s commonly used to assess investments by forecasting cash inflows and applying a discount rate to reflect the risk vs return profile.

For investors in products like the Funding Income Trust, DCF models can be used to compare expected net returnswith other income-generating assets. It also plays a role in underlying valuation of property-backed loans.

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