Hey everyone, so obviously when discounting cash flows in valuation the go-to is using the WACC. However, not sure if it's just me, but the cost of equity is totally arbitrary in regard to beta calculations and the market risk premium -- the method is almost too theoretical and textbook-like.
Does anyone have any thoughts in regard to discount rates? I've heard of other methods like using the Ibbotson-Chen model, but I was curious to see how others think about discount rates. Thanks!
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