A Discounted Cash Flow Model (DCF) is a financial tool used to estimate the value of an investment based on its expected future cash flows. It calculates the present value of these cash flows by applying a discount rate, which reflects the risk and time value of money. This helps investors determine whether an investment is worth pursuing. In a DCF analysis, future cash flows are projected over a specific period, and then discounted back to their present value. This method is commonly used in valuing companies, real estate, and other assets, providing a systematic approach to investment decision-making.