Valuation Blog Archive

What is Discount Rate in Valuation?     In valuation, the discount rate refers to the rate of return used to determine the present value of future cash flows. It’s also known as the required rate of return or the opportunity cost of capital. The discount rate takes into account the risk associated with an...

What is WACC in Valuation?     WACC stands for Weighted Average Cost of Capital, which is a financial metric used to determine the cost of capital for a company. The WACC takes into account the cost of both debt and equity financing, as well as the proportion of each that a company uses to...