Mid-year convention
The mid-year convention is a technical DCF adjustment that assumes cash flows arrive spread across the year rather than all at once on 31 December. Discounting them from the middle of the year instead of the end corrects a bias that would otherwise undervalue the company systematically. The effect is small but consistent, which is why it is standard practice in professional valuation.
See also
Where it is used
See it on real data
Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.
Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.