Remove Beta Remove Comps Remove Treasury
article thumbnail

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. Risk free rate (can use 10y Treasury). The first is 1.

article thumbnail

Startup Valuation: The Ultimate Guide

Equidam

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 10-year Treasury or German Bund), which fluctuate based on central bank policies and inflation expectations. [23]