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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Risk free rate (can use 10y Treasury). Market Return. The details of how the CAPM works is beyond the scope of this article but in short, the formula is as follows: Ce = Rf + B x (Rm – Rf) + Cp. B = Beta. (Rm