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What basis(es) do you use when picking a discount rate?

Hi dtf,

Great question. Does this explain?

I laid out some thinking in that post on discount rates and why I'm using 15% pretty consistently. I'd be eager to discuss it further.

For instance, why do you choose 12%? Do you adjust for additional risks inherent in the company (e.g. country of operations, big competition on the horizon, etc.)? When you calculate WACC, is that the rate (or close to it) that you often come to?

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