Discounted Cash Flow Valuation for Forex Trading

5 min read

Discounted Cash Flow (DCF) Valuation is a method of valuing a company or asset based on its projected future cash flows. This method has become increasingly popular among foreign exchange (forex) investors, as it allows for projecting potential profitability based on pragmatic assumptions about the future of the currency market. By forecasting future cash flows, investors can assess the fair value of a currency in a more accurate fashion, ultimately helping to limit the risk associated with investing in the currency market.