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Healthcare Glossary

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Discounted cash flow (DCF)

A method of estimating the current value of an investment based on the discounting of projected future revenues and costs. The further into the future the flow occurs, the more heavily it will be discounted.
Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them to recognise a present value, which is then used to calculate the potential for investment.

See also:
Cost–benefit analysis
Cost-effective (healthcare economics)
Cost-effectiveness league table (healthcare economics)
Cost-effectiveness threshold (health economics)
Cost-minimisation analysis (CMA)
Cost consequences analysis (CCA)

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