BizSugar.com › Finance › SDCF - Seller\'s Discretionary Cash Flow

Seller’s Discretionary Cash Flow (SDCF), also sometimes referred to as seller’s discretionary income (SDI) or seller’s discretionary earnings (SDE), is a computation often used when valuing a small or medium-sized business. While larger, public companies are often valued using the price/earnings ratio (or the price of the stock divided by the company’s earnings) and Enterprise Value, smaller, private businesses may use a number of alternative methods to determine a fair sale price.