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Remove Net Present Value Remove Risk Premium Remove Risk-free Rate Related Topics
Weighted Average Cost of Capital Market Risk Beta Terminal Value Capital Structure Comparable Company Analysis Asset-based Approach Specific Risk Discounted Cash Flow EBIT More Related Topics >
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Discount Rate—Explanation, Definition and Examples

Valutico

FEBRUARY 27, 2024

The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate. Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis.

Discounted Cash Flow 52
Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52
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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

OCTOBER 20, 2022

This value is widely referred to as the “Net Present Value” (NPV). . which produces a Net Present Value of the Terminal Value of: $74 million. . So the Terminal Value here is three times as large! Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium.

Discounted Cash Flow 52
Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value 52
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