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How to Value a Company with the Discounted Cash Flow Model
Motley Fool Money
The Discount Rate Is the Require Rate of Return for a Business
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A discount rate is what we divide or discount those future free cash flows back to present value. The more risky a business is, the higher the discount rate we want to use. Most investors want to beat the stock market by a little bit so their required rate of return for the average business will be slightly higher than 9 to 10%.
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