Equidam

APRIL 26, 2025

Furthermore, any quantitative valuation method, particularly the Discounted Cash Flow (DCF) approach, is highly sensitive to the underlying assumptions about growth rates, discount rates, and terminal values. The terminal value is estimated by applying a market-based multiple to a financial metric of the final projected year.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Chris Mercer

MARCH 7, 2024

The determination of the present value of expected future cash flows is inherently a quantitative exercise. The final cash flow for minority interests is the expectation of a terminal value at the end of the expected holding period. However, the same appraisers estimate company-specific risk premiums on a regular basis.

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52

Equidam

APRIL 22, 2025

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 1] , [21] , [23] , [29] The terminal value is estimated by applying a relevant market multiple (e.g.,

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64