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Discount Rate—Explanation, Definition and Examples

Valutico

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value.

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Terminal Growth Rate – A Simple Explanation with Formula

Valutico

The Terminal Growth rate is used as a crucial part of the widely used valuation technique Discounted Cash Flow analysis, to determine that Terminal Value. Explaining Free Cash Flow: Cash flow is like the lifeblood of a business (or your personal finances).