Remove Beta Remove Capital Structure Remove Comps Remove Market Risk
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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Risk free rate (can use 10y Treasury). Market Return. The first is 1. the asset-based approach also known as the cost-based approach, and finally 3.