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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. B = Beta. (Rm DCF WACC—similar to the above except that it calculates a different WACC in each forecast period based on a changing capital structure (D/E) and thus a changing beta in each period. The first is 1. Ce = Cost of Equity. Rf = Risk-free Rate.

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ESG A Valuation Framework

Value Scope

Adjustments to Beta can accomplish this. Beta measures systemic risk, and the performance of a company as compared with a broad index like the S&P 500 or the Russell 2000. There are also methods to use Beta to assess a private company, if the Guideline Public Companies selected for the analysis, the “comps,” are chose properly.