Musings on Markets

FEBRUARY 8, 2025

The first is, of course, the riskfree rate , a number that varies across time (as you saw in post on US treasury rates in data update 4 ) and across currencies (in my post on currencies in data update 5). I am not a purist on this measure, and while I use betas in my computations, I am open to using alternate measures of relative equity risk.

Risk Premium 74

Risk Premium Beta Start-ups Equity 74

Valutico

OCTOBER 20, 2022

Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. 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).

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52

Reynolds Holding

JANUARY 6, 2025

The EIOPA report was drafted in line with the mandate outlined by the European Commission to assess the prudential treatment of assets with potential risks related to the EUs environmental and social objectives. 2) Order 2024 on November 14, seeking technical comments.

Treasury 45

Treasury Finance Banking Marketability 45

Equidam

APRIL 22, 2025

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] 23] Risk-Free Rate: Tied to government bond yields (e.g.,

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64