Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples
Valutico
OCTOBER 20, 2022
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.
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