The Discounted Cash Flow Model (DCF) is a financial valuation method used to estimate the value of an investment based on its expected future cash flows. It involves projecting the cash flows that an investment will generate over time and then discounting them back to their present value using a specific rate, often the cost of capital. This helps investors determine whether an investment is worth pursuing. By applying the DCF model, investors can assess the potential profitability of assets like stocks, real estate, or business ventures. The model emphasizes the time value of money, recognizing that cash received in the future is worth less than cash in hand today due to factors like inflation and risk.