Remove EBIT Remove Risk Premium Remove Treasury
article thumbnail

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

Valutico

Rf = Risk-free Rate. Rm – Rf) = Equity Market Risk Premium. Cp = Cost of Equity Premium. Tax (from tax rate and EBIT). Risk free rate (can use 10y Treasury). Ce = Cost of Equity. B = Beta. (Rm Depreciation. Amortization. Non-cash working capital. Cost of Debt. Market Return. Cost of Equity.

article thumbnail

Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

Thus, as you peruse my historical data on implied equity risk premiums or PE ratios for the S&P 500 over time, you may be tempted to compute averages and use them in your investment strategies, or use my industry averages for debt ratios and pricing multiples as the target for every company in the peer group, but you should hold back.