DCF discounting convention that assumes cash flows arrive at the midpoint of each year rather than year-end, using exponents of 0.5, 1.5, 2.5, ldots instead of 1, 2, 3, ldots: PV = fracUFCF_t(1+WACC)^t-0.5. Produces a higher enterprise value than end-of-year discounting (typically 3-5% over a 5-year projection). More technically accurate for businesses with steady, evenly distributed cash flows; less appropriate for seasonal businesses. The PGM terminal value should also be discounted using mid-year convention; using year-end understates value.