## anonymous 5 years ago For emerging market valuation: Do practitioners prefer to model the risk in the cash flows or in the discount rate?

1. anonymous

It depends in the information you got, but normally it is easier to model it in the discount rate

2. anonymous

Discount rate for Wacc Model and incremental cash flow model. Usually its benchmarked with the Market Beta$\beta=Rm(Rm-Rf)$. The cash flow then discounted at this calculated Beta.

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