Kiki
  • Kiki
For emerging market valuation: Do practitioners prefer to model the risk in the cash flows or in the discount rate?
Finance
chestercat
  • chestercat
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anonymous
  • anonymous
It depends in the information you got, but normally it is easier to model it in the discount rate
anonymous
  • 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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