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How to Calculate a Discount Rate in Excel

The discount rate refers to the interest rate used when calculating the net present value (NPV) of an investment. It represents the time value of money, which is the concept that a sum of money today ...
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 ...
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

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 ...
Investing

What Is The Correct Discount Rate To Use? Part 2B

One of the most widely-accepted and utilized methods of valuing a business in today’s world of modern finance is discounted cash flow (DCF) analysis. Obviously, in order to calculate valuation, ...
Investopedia

How to Calculate a Discount Rate in Excel

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Thomas J Catalano is a CFP and Registered Investment Adviser ...