Valutico

FEBRUARY 27, 2024

Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. In DCF analysis, the Weighted Average Cost of Capital (WACC), representing the average return required by all stakeholders, is commonly used as the discount rate.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52

Andrew Stolz

AUGUST 5, 2020

If an investor moves money from the risk-free asset into the stock market, they should expect to earn a return in excess of the risk-free rate, what is called an equity risk premium. What Impacts the Capital Asset Pricing Model? Investments are exposed to two types of risk: systematic and unsystematic.

Risk-free Rate 52

Risk-free Rate Beta Weighted Average Cost of Capital Risk Premium 52

Valutico

AUGUST 30, 2023

Explaining Free Cash Flow: Cash flow is like the lifeblood of a business (or your personal finances). Free Cash Flow is a specific type of cash flow that focuses on the cash left after the company has covered all its necessary expenses and capital investments needed to maintain and grow the business.

Terminal Value 98

Terminal Value Dividends Weighted Average Cost of Capital Discounted Cash Flow 98