Remove EBIT Remove EBITDA Remove Market Risk Remove Weighted Average Cost of Capital
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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). Some practitioners will use an average of both methods. . Ce = Cost of Equity. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium.