Remove Beta Remove Enterprise Value Remove Risk-free Rate
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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

Step 4: Discount the Dividends and Terminal Value to Present Value and Add Them This is like the final step of a DCF, but you use the Cost of Equity since the Dividend Discount Model is based on Equity Value, not Enterprise Value. DTM’s Levered Beta at this time was only 0.80, but I increased it to 1.00

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

Valutico

Rf = Risk-free Rate. B = Beta. (Rm Rm – Rf) = Equity Market Risk Premium. Discount the Terminal Value. . Add up all the figures you have to arrive at the Net Present Value. Depending on the exact methodology and discount rate used, this could be the Enterprise Value or Equity Value.