Enterprise Value and Risk-free Rate - Business Valuation Zone

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Brian DeChesare

MAY 3, 2023

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. Note that there is no Equity Value to Enterprise Value bridge here.

Dividends

Dividends Terminal Value Enterprise Value Equity

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

Valutico

OCTOBER 20, 2022

Rf = Risk-free Rate. 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.

Discounted Cash Flow

Discounted Cash Flow Terminal Value Weighted Average Cost of Capital Net Present Value

Data Update 5 for 2025: It's a small world, after all!

Musings on Markets

FEBRUARY 6, 2025

I am no expert on exchange rates, but learning to deal with different currencies in valuation is a prerequisite to valuing companies. The first is the price earnings ratio , partly because in spite of all of its faults, it remains the most widely used pricing metric in the world.

Risk Premium

Risk Premium Start-ups Enterprise Value Equity

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

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

Data Update 5 for 2025: It's a small world, after all!

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