Discount Cash Flow

Description
Cash Flow (CF)
Cash flow is any sort of earnings or dividends. These cash flows can include revenues from the sales of products or services or cash from selling an asset.
Number of Periods (n)
The number of periods is however many years the cash flows are expected to occur. Oftentimes, the number of periods is 10, or 10 years, as this is the average lifespan of a company. However, depending on the company itself, this period could be longer or shorter.
Discount Rate (r)
The discount rate brings future costs to present value. Typically, the discount rate is the company’s cost of capital, or how much the company must make to justify the cost of operation. This cost is usually the weighted average cost of capital (WACC), which is the company’s interest rate and loan payments or dividend payments to shareholders.
Discounted cash flow (DCF) valuation is a type of financial modeling, and it is a common type used by many finance professionals. There are two key ways you can include DCF skills on your resume.
Skills section: You can list “financial modeling” in your skills section. You can even include DCF, and any other types of modeling you are skilled in, alongside financial modeling.
Work or internship experience section: You can mention an instance where you created a DCF model as part of prior work or internship experience.