Can anyone help me understand concept of discounted cash flow.
hi Vigneshwar Shankar Poojar , hope this will be of some help. http://www.investopedia.com/video/play/discounted-cash-flow-dcf/
If explained by an example, if you have invested Rs 100 in such a way that 1 month from now that Rs 100 would have turned into Rs 150 (Future Value), you can sell that investment today at Rs 125 (Present Value) to another person. The difference ( Future Value-Present Value) is called the discount over cash flow. The whole mechanism is called Discounted Cash Flow.