Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples
Valutico
OCTOBER 20, 2022
FCF n is the free cash flow in year n, being the last forecast period. g is the terminal growth rate. d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). What Happens When We Add the Terminal Value? Ce = Cost of Equity.
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