DCF Method versus CAPM Model




Discounted Cash Flow
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Victor Brown
Student (MBA), United States

DCF Method versus CAPM Model

What are the differences between discounted cash flow methods and capital asset pricing model?
 

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Nick Moore
Financial Consultant, United Kingdom
 

DCF versus CAPM

CAPM is part of the process that gives you the discount rate to use in the DCF calculation.

 
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bund
Student (University), Kenya
 

Difference Between DCF Method and CAPM

the discounted cashflow method is used to discount future cash flows, allowing the user to determine the future value of current cashflow.
CAPM is a model used to calculate the rate of return of an asset and it is used to determine if risks can be diversified and uses beta to correct for systematic risk.

   

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