Definition Discounted Cash Flow Net Present Value 
Valutico
FEBRUARY 27, 2024
The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. That’s why it’s called a ‘discounted’ cash flow.
Andrew Stolz
AUGUST 6, 2020
Definition of Capital Budgeting. The net present value of an asset (NPV). It is calculated by dividing initial investment by cash inflows. Payback period = Initial investment / Cash inflows . Companies only have limited resources, so capital budgeting helps them prioritize the projects.
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Andrew Stolz
AUGUST 6, 2020
Definition of Stock Valuation. There are 2 main ways to value stocks: absolute and relative valuation. . Absolute valuation is a method to calculate the present worth of businesses by forecasting their future income streams. Another method to use is the discounted cash flow (DCF).
Value Scope
SEPTEMBER 24, 2020
How do you justify making substantial investments and fundamental changes to corporate structures and culture without empirical evidence that it will make a direct impact on shareholder value, total shareholder return, net present value, and individual rates of return? . Do ESG programs impact firm value?
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