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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

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Private Company Valuations—A Complete Guide

Valutico

These cash flows typically include operating income, tax payments, and changes in working capital and capital expenditures. b) Determining the Discount Rate: The discount rate, often the weighted average cost of capital (WACC), reflects the risk associated with the company’s cash flows.

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

Valutico

d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example). Often, the Weighted Average Cost of Capital (WACC) is used*. . Try booking a demo , if this applies to you. And you need three numbers to do this. . Forecast cash flow.