Valutico

FEBRUARY 27, 2024

In this article, we’ll cover the basics of what a discount rate is and where it’s used. In this article, we cover the latter. Capital Asset Pricing Model (CAPM): According to CAPM, the expected return on a stock has two main components: the risk-free rate and a risk premium. What is a discount rate?

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Beta 52

Valutico

FEBRUARY 13, 2025

In the world of finance and investing, the concept of beta plays a vital role in assessing an investment’s risk and volatility. Whether you’re a seasoned investor or new to the market, understanding beta can empower you to make informed decisions. Different indices may yield different beta values for the same asset.

Beta 52

Beta Covariance Risk-free Rate Specific Risk 52

Valutico

OCTOBER 20, 2022

If you want to read to a step-by-step example of a DCF, skip to the end of the article here. In this article, we have referred to the discount rate to be used to discount the future cash flows as the Market Rate (r) or generally as the discount rate (d). . 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