Market Risk Marketability Net Present Value Weighted Average Cost of Capital 
Valutico
FEBRUARY 27, 2024
The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value. 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.
Valutico
OCTOBER 20, 2022
But here, we use what interest we could get from an alternative investment in the market, called the Market Rate. Discount Factor (using Market Rate: r=10%). This value is widely referred to as the “Net Present Value” (NPV). . We add that return on, and get a larger cash value in future years. .
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