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Discount Rate Myth 1: If you don't like betas, you cannot do DCF
Published 2 weeks, 3 days ago
Description
In this session (the first of five on discount rate myths in DCF), I look at the notion that modern portfolio theory (and the use of betas to get discount rates) are locked at the hip with DCF and that if you don't like one (usually betas), you have to abandon the other. In reality, DCF is agnostic about what model you use to get your discount rate and I look at alternatives.
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/DiscountRateMyth1.pdf
Blog Post: http://aswathdamodaran.blogspot.com/2016/11/myth-41-if-you-don-like-betas-or-modern.html
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