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In any version of a risk and return model for discount rates, where you start with a riskfree rate … Read more Myth 4.5: DCFs break down with near-zero risk free rates!

In discounted cash flow valuation, discount rates are the instruments that we use to adjust for the… Read more Myth 4.4: The D(discount) rate is a receptacle for your hopes and fears

In my last post, I argued that academics and practitioners pay too much attention to discount rates… Read more Myth 4.3: The D cannot change (over time) in a DCF

If you have taken a class on valuation, think back to what you spent most of your time doing and I … Read more Myth 4.2: It's all about D in the DCF

Let’s start by stating the obvious. You need a D(iscount rate) to do D(iscounted) C(ash) F(low) val… Read more Myth 4.1: If you don't like betas (or modern portfolio theory),you cannot do a DCF!