Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). Otherwise, the written version follows: Why Use a Dividend Discount Model? The main argument in favor of the DDM is that it best represents what happens in real life when you buy a stock.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Valutico

APRIL 17, 2023

The Cost of Capital is then used to discount future expected cash flows to arrive at a present value – the valuation of the business using the Discounted Cash Flow method, a leading valuation technique. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

The Cost of Capital is then used to discount future expected cash flows to arrive at a present value – the valuation of the business using the Discounted Cash Flow method, a leading valuation technique. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

The Cost of Capital is then used to discount future expected cash flows to arrive at a present value – the valuation of the business using the Discounted Cash Flow method, a leading valuation technique. The required rate of return for equity (Re) is generally calculated using the Capital Asset Pricing Model (CAPM). A beta of 1.0

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Andrew Stolz

MARCH 20, 2020

The formula implies the return an investor expects from a risk-free investment plus the return from the stock in relation to market volatility. The market risk premium is calculated from a market rate of return less a risk-free rate. Lower WACC can increase the present value of a firm.

Beta 52

Beta Risk-free Rate Capital Structure Weighted Average Cost of Capital 52

Brian DeChesare

AUGUST 31, 2022

Convertible Bond Analysis – Notes and Presentation (PDF). Convertible bonds offer lower coupon rates than traditional bonds because they also include conversion options that allow investors to turn the bonds into common shares if the company’s stock price reaches a certain level (the “conversion price”). 29:05: Recap and Summary.

Banking 70

Banking Risk-free Rate Equity Start-ups 70

Musings on Markets

JANUARY 12, 2021

Thus, you and I can disagree about whether beta is a good measure of risk, but not on the principle that no matter what definition of risk you ultimately choose, riskier investments need higher hurdles than safer investments.

Corporate Finance 52

Corporate Finance Start-ups Finance Marketability 52