Remove Comps Remove Risk Premium Remove Risk-free Rate
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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

the multiple based or ‘ comps ’ (comparable company analysis) approach. Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Now, we need to calculate the discount rate. . Risk free rate (can use 10y Treasury). The first is 1.