Asset-based Approach Net Present Value Terminal Value Weighted Average Cost of Capital 
Valutico
MAY 6, 2024
This rate typically reflects the weighted average cost of capital (WACC) which accounts for the risk associated with the future cash flows and the capital structure of the company. The terminal value can be estimated using the perpetuity growth model or the exit multiple approach.
Valutico
OCTOBER 20, 2022
Context of DCF: There are three main approaches to calculating a company’s value. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. the asset-based approach also known as the cost-based approach, and finally 3. The first is 1.
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