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Six DCF Common Mistakes

Equilest

error in the weighted average cost of capital (WACC). The weighted average capital price describes the discount rate. The weighted average cost of capital weighs two capital prices - the price of foreign capital and the price of equity. WACC Errors.

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How to Value a Website or Internet Business in 2022

FE International

One of the most thorough ways to value a business is through a DCF analysis , which involves forecasting the free cash flows of the acquisition target and discounting them with a predetermined discount rate, usually the weighted average cost of capital ( WACC ) for the business in question. Financials. trademark).