Net Present Value Risk-free Rate Weighted Average Cost of Capital 
Valutico
FEBRUARY 27, 2024
Different types of discount rates such as risk-free rate, cost of equity, or cost of debt, are used contextually in financial analysis. The Discounted Cash Flow (DCF) method uses the discount rate to consider all future cash flows of a business when calculating its current value.
Valutico
OCTOBER 20, 2022
This value is widely referred to as the “Net Present Value” (NPV). . FCF n is the free cash flow in year n, being the last forecast period. g is the terminal growth rate. d is the discount rate (which is usually the weighted average cost of capital (WACC), r in our previous example).
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