Equidam

APRIL 26, 2025

Methods relying heavily on historical data or the current balance sheet, such as Book Value or Cost to Duplicate approaches, often fail to capture this forward-looking, intangible-driven value. The book value typically represents only a fraction of the perceived worth and fails entirely to account for future prospects.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Andrew Stolz

MARCH 20, 2020

Weight average cost of capital (WACC) is a calculation of a firm’s cost of capital which includes all sources of capital such as common stocks, preferred stocks, and bonds. A firm uses a mix of equity and debt to minimize the cost of capital. WACC is highly sensitive to many factors.

Beta 52

Beta Risk-free Rate Capital Structure Weighted Average Cost of Capital 52

Valutico

OCTOBER 20, 2022

d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Ce = Cost of Equity. B = Beta. (Rm Cp = Cost of Equity Premium. Often, the Weighted Average Cost of Capital (WACC) is used*. . Cost of Debt.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Valutico

AUGUST 17, 2022

While the DCF also discounts future cash flows to a present value today, it does so using discount rates typically calculated using the Capital Asset Pricing Model (either Weighted Average Cost of Capital (WACC) or Cost of Equity (CoE)). If you want to learn more about the VC Method, book your demo here.

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52