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

Valutico

What is The Discounted Cash Flow Method? This complete guide to the discounted cash flow (DCF) method is broken down into small and simple steps to help you understand the main ideas. . What is the Discounted Cash Flow Method? What is the discounted cash flow method?

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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. Market Maturity: Mature industries, like utilities or traditional consumer goods, tend to have lower Terminal Growth Rates.