Valutico

FEBRUARY 27, 2024

In DCF analysis, the Weighted Average Cost of Capital (WACC), representing the average return required by all stakeholders, is commonly used as the discount rate. It is calculated by weighting the cost of equity and cost of debt based on their proportions in the capital structure.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Andrew Stolz

AUGUST 5, 2020

Definition of Capital Asset Pricing Model. When an investor buys a particular security, they consider the risk of that security relative to the riskiness of the overall market and adjust the equity risk premium up or down by using Beta. What Impacts the Capital Asset Pricing Model? beta of a stock). E(r) = Rf + ??(Rm

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

Equidam

APRIL 26, 2025

Valuation as a Process, Not Just a Number A common misconception is that startup valuation aims to pinpoint a single, definitive “right” number representing the company’s price. This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Value Scope

SEPTEMBER 24, 2020

Fixed definitions are hard to come by, and the scattering of websites, scorecards, speeches, podcasts, and white papers that mention ESG in many different ways do not help. Adjustments to Beta can accomplish this. For example, in a recent valuation we completed, the mean unlevered Beta of a group of 10 comps was 0.58.

Intangible Assets 130

Intangible Assets Alpha Beta Marketability 130