Remove Capital Structure Remove EBIT Remove Market Risk Remove Risk-free Rate
article thumbnail

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

Valutico

Rf = Risk-free Rate. 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. Tax (from tax rate and EBIT).