Seeking Alpha

DCF Under A Microscope: 3 Errors That Can Make You Think A Stock Is Undervalued When It Isn't

The DCF model is powerful but highly sensitive to key inputs: discount rate, perpetual growth rate, and growth assumptions. Choosing the right discount rate is crucial; too low or too high a rate can ...
Forbes

How To Craft Industry-Specific Financial Models With Precision Discount Rates

Accurate valuations are paramount in financial analysis, influencing corporate strategies, as well as investment decisions and market perceptions. Among various valuation methods, the discounted cash ...
Investopedia

Discount Rate Defined: How It's Used by the Fed and in Cash-Flow Analysis

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Seeking Alpha

Discounted Cash Flow: What Discount Rate To Use?

There are many methods to estimate the value of a company, but one of the most fundamental and frequently used is Discounted Cash Flow (DCF) analysis. The general idea behind the method is this: the ...
Investopedia

Cost of Capital vs. Discount Rate: What's the Difference?

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Vikki Velasquez is a researcher and writer who has ...