How to Calculate the Discount Rate for Income Approaches

Select Valuation Methods 

Select Income Approach 

Select Calculate Discount Rate 

Step 1:  Method(s) for calculating Cost of Equity 

Select one or any combination of the following: CAPM, Build-Up or Duff & Phelps 

Click here for information about cost of equity methods 

Step 2: Set the Cost of Debt 

Step 3: Determine the Target Capital Structure 

Step 4: Choose Method(s) for Calculating the Discount Rate 

Weight each of the methods in Step 1 

Select Save or Finish