As always, we calculate with a discount rate of 10% and use 4,868 million outstanding shares.

Source: https://seekingalpha.com/article/4616634-atlas-copco-outperforming-but-overvalued?source=feed_all_articles

Based on a discount rate of 9.6% (company’s WACC) and terminal value based on the average chipmaker EV/EBITDA of 17.13x, our model shows an upside of 13.84%.

Source: https://seekingalpha.com/article/4653780-texas-instruments-best-semiconductor-dividend-stock-to-buy?source=feed_all_articles

Discounted Cash Flow (DCF) Analysis: This method involves estimating the company’s future cash flows and then discounting them back to the present value using an appropriate discount rate, often the company’s Weighted Average Cost of Capital (WACC).

Source: https://southafricatoday.net/business/key-factors-considered-by-investors-when-valuing-a-business/

Discounted cash flow, even with a “privileged” discount rate similar to what I use for Dover, Eaton, et al only gets me to a mid-single-digit prospective annualized return.

Source: https://seekingalpha.com/article/4585530-illinois-tool-works-stock-looks-priced-beyond-perfection?source=feed_all_articles

Further, I use far more conservative growth estimates (10% for 2023-2025, 7% for 2026-2028, and 5% for 2029-2032) than management is guiding, and use an aggressive discount rate of 15%, far above the current 10-year treasury yield.

Source: https://seekingalpha.com/article/4626870-smci-q4-earnings-review-strong-demand-hampered-by-supply-shortages?source=feed_all_articles

I congratulate you for not being silly and reducing the 10% discount rate.

Source: https://seekingalpha.com/article/4635658-verisk-analytics-industry-leading-data-analytics-insurance-claims-hold?source=feed_all_articles

I decided to keep the discount rate in line with my Cost of Equity because Oxford holds a solid balance sheet and brand which they can leverage in order to improve their financial position during these headwinds.

Source: https://seekingalpha.com/article/4654142-oxford-industries-undervalued-company-with-solid-brand?source=feed_all_articles

I have placed a higher discount rate of 12% given the elevated execution risk and cyclicality of the business.

Source: https://seekingalpha.com/article/4618977-six-flags-entertainment-hold-until-we-can-further-verify-turnaround?source=feed_all_articles

In any sense, if OSUR does in fact generate the earnings growth outlined above, the NPV of its future market value is higher than it is currently, presuming the 12% discount rate.

Source: https://seekingalpha.com/article/4605333-orasure-valuation-upside-16x-forward-pe?source=feed_all_articles

Indeed, a 4% earnings yield that is growing 14% for 7 years, with lower terminal growth thereafter implied in a terminal multiple of 20X (remember, we are in a zero rate environment!) has around 33% upside using a 8% discount rate.

Source: https://seekingalpha.com/article/4632790-interactive-brokers-stock-reasonably-priced-even-in-zirp-environment?source=feed_all_articles

In response to rising inflation over the past quarter, the Central Bank of Egypt hiked policy interest rates by 200 bps on 30 March, taking the discount rate to 18.75% from 8.75% a year earlier.

Source: https://www.kuwaittimes.com/egypts-economic-growth-under-renewed-pressure/

In valuing this company, I have elected to use a discount rate of 10.0%, discounting beginning in the second year.

Source: https://seekingalpha.com/article/4640847-keurig-dr-pepper-wait-for-a-discount-to-buy-this-important-growing-beverage-company?source=feed_all_articles

Investors seem to believe that rates falling signals a return to the pre-Fed tightening markets where growth stocks can be marked up to higher valuations based on a lower discount rate.

Source: https://seekingalpha.com/article/4591983-weekly-market-pulse-whats-wrong-with-t-bills?source=feed_all_articles

The discount rate is 10.0%.

Source: https://seekingalpha.com/article/4589089-tesla-and-terrible-business-economics?source=feed_all_articles

The net pension liability increased slightly to €2.3 billion, mainly because of a 30 basis point decline in the discount rate, which reflects the tenor of 23 years.

Source: https://seekingalpha.com/article/4623826-deutsche-lufthansa-ag-dlakf-q2-2023-earnings-call-transcript?source=feed_all_articles

This is a very risky project and when compared to other discount rates would be fairly high; one person’s discount rate is another’s rate of return on his investment.

Source: https://edmontonjournal.com/opinion/letters/wednesdays-letters-justice-system-too-soft-on-crime