DEFINITION of 'Discounted AfterTax Cash Flow'
An approach to valuing an investment that looks at the amount of money it generates and takes into account the cost of capital and the investor's marginal tax rate. Discounted aftertax cash flow is similar to simple discounted cash flow (DCF), but tax implications are also taken into consideration. Because there are many different methods for valuing an investment, and each method has its shortcomings, investors should not rely solely on discounted after tax cash flow to make a decision.
BREAKING DOWN 'Discounted AfterTax Cash Flow'
For example, discounted aftertax cash flow can be used in real estate valuation to determine whether a particular property is likely to be a good investment. Investors must consider depreciation, the tax bracket of the entity that will own the property and any interest payments when using this valuation method. To examine the property's value from multiple perspectives., you can also use other methods of real estate valuation such as the cost approach, sale comparison approach and income approach.

Discount Rate
The interest rate charged to commercial banks and other depository ... 
Discounted Cash Flow (DCF)
Discounted cash flow (DCF) is a valuation method used to estimate ... 
Discounting
The process of determining the present value of a payment or ... 
Present Value  PV
The current worth of a future sum of money or stream of cash ... 
Rate Of Return
The gain or loss on an investment over a specified period, expressed ... 
AfterTax Income
The amount of money that an individual or company has left over ...

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How do you use DCF for real estate valuation?
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Why would you take DCF into account rather than simply projecting future revenues?
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When and why should the terminal value be discounted?
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How do I use discounted cash flow (DCF) to value stock?
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What is the formula for calculating free cash flow?
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