Discount Rate—Explanation, Definition and Examples
Valutico
FEBRUARY 27, 2024
Key takeaways: The discount rate is primarily used by central banks to manage the economy and investors to calculate the present value of future cash flows from an investment. 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.
Let's personalize your content