Discounted cash flow valuation treats the future ambivalently, valuing yet discounting it.

Evidence

This valuation method takes an ambivalent view of the future, since it defines value by future cash flows but is quick to reduce that value by applying a discount rate. — Ève Chiapello, Financialisation of Valuation, 30

Categorization

• DEFINE: The ambivalence of DCF — valuing future flows while discounting them — is a crisp characterization of the technique’s underlying assumption.
• XREF: Connects to the reading purpose on financialized valuation colonizing non-financial activity: the more distant flows, the less they contribute to value, reshaping how the future is weighted in any domain this technique enters. — connects to: Stock valuation discounts future dividends because present money earns interest. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 205; Asset value derives from future earnings rather than intrinsic commodity value — Kean Birch, Rethinking Value in the Bio-economy:…, 73; the risk-neutral valuation insight lets options be priced by discounting at the riskless rate — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 583 (+1 more)

Related

• Stock valuation discounts future dividends because present money earns interest. (similarity 0.84)
• Financialised valuation draws on financial economics and mathematical finance. (similarity 0.78)

Broader Connections

• Stock valuation discounts future dividends because present money earns interest. #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 205
• Asset value derives from future earnings rather than intrinsic commodity value #qualifies (0.80) — Kean Birch, Rethinking Value in the Bio-economy, 73
• the risk-neutral valuation insight lets options be priced by discounting at the riskless rate #expands (0.80) — Donald MacKenzie, An Engine, Not a Camera, 583