Remove Beta Remove Comps Remove Risk-free Rate Remove Treasury
article thumbnail

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. Flow to Equity – this calculates the Free Cash Flow to Equity and discounts these cash flows using the Cost of Equity. The first is 1.