article thumbnail

Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

article thumbnail

Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

article thumbnail

Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Often, the Weighted Average Cost of Capital (WACC) is used*. . Try booking a demo , if this applies to you. And you need three numbers to do this. . Forecast cash flow.