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. 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. Now, we need to calculate the discount rate.
Let's personalize your content