DiscountCashFlows
The workhorse of a DCF: discounts a series of future cash flows to today and returns both the per-period present values and their total. Cash flows are assumed to start one period from now (the first value is discounted a full period), so wire in the forecast years only, not a period-0 outlay. If a TerminalValue is connected, it is added to the final cash flow before discounting, which is the standard treatment for a year-N terminal value.
Inputs
| Input | Accepts | Required |
|---|---|---|
CashFlows | Series (a list of numbers) | Yes |
DiscountRate | Value (a single number) | Yes |
TerminalValue | Value (a single number) | Yes |
Outputs
| Output | Produces |
|---|---|
PresentValues | Series (a list of numbers) |
TotalPV | Value (a single number) |
Settings
Typed in on the node or set by the assistant, not wired.
| Setting | Default | Notes |
|---|---|---|
DiscountRate | 0.1 | Per-period discount rate as a decimal; wire WACC's result in, or type 0.1 for 10%. Default 0.1. |
Example
A 5-year forecast from ForecastSeries ($5.0M growing 8% to $6.8M) discounted at a 10% WACC, with a $92.9M Gordon Growth terminal value wired into TerminalValue. Year 1's $5.0M is worth $4.55M today; year 5 carries the terminal value, so $99.7M discounts to $61.9M. TotalPV comes to roughly $79.6M: the enterprise value. Put TotalPV on a KPICard and the PresentValues series on a chart to show where the value sits.
Tips
Because every flow is discounted at least one period, an upfront investment does not belong in this series. Subtract it downstream, or use NPV, which treats its first value as period 0. Feed the same rate here and into TerminalValue from one WACC node so a rate change moves the whole model together.