Verwenden Sie „discount rate“ in einem Satz

1. The market generally prices in a discount rate change that was delayed

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2. If the discount rate was changed for political rather than economic reasons, a common practice in the

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3. The cars were being sold at discount rates to employees, directors, or even friends of employees

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4. both the discount rate and the federal funds rate, those firms who fund with debt are most

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5. with a discount rate of 40% would be worth $3

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6. As we have seen, an estimate of the company's current intrinsic value on the basis of its earnings power requires two steps: first, adjustments to the reported earnings in order to arrive at a figure that represents the cash the investors can extract from the firm and still leave it functioning as before; second, selection of a discount rate that reflects both interest rates and the riskiness of the firm relative to other investment alternatives

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7. Dividing the discount rate into the adjusted earnings gives us our earnings power value (EPV)

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8. Surely there must be a simpler and more stable method for arriving at discount rate

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9. With our earnings power (adjusted EBIT fully taxed) and discount rate in hand, we are almost ready to calculate an EPV for Intel

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10. It is not a coincidence that growth is neutral when the discount rate, or cost of capital, is also 16 percent

11. And he is careful to make sure that all of the assumptions that are built into a present value analysis are reasonable and conservative: sales growth rates; profit margins; the market prices of assets such as oil, gas, and other fuels; capital expenditure requirements; and discount rates

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12. The annual cash flows and the terminal values are then discounted to the present using discount rates of 10 percent, 12

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13. The cash flows in the projection are identical; the only difference is what they are worth today, and that depends on the discount rate

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14. Estimates of the value of proved oil and gas reserves discounted to present value at a 10 percent discount rate (known as SEC PV 10)

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15. high discount rates with substance-abusing populations, the discount rate measure

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16. revealed that participants with high prenatal discount rates were more likely to

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17. return to smoking following childbirth, while those with low discount rates were

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18. more likely to relapse in their experiment than smokers with low discount rates

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19. Otherwise, you will have to discount the future rental payments to the present using a discount rate

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20. You can find operating leases in the notes to the financial statements, and you can either discount the future operating lease obligations using a discount rate or multiply one year’s rent by a multiplier rule of thumb, such as seven

21. As we will discuss shortly, interest rates effect the discount rates for the Discounted Cash Flow calculation

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22. The choice of discount rate is one that is not given adequate attention from investors

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23. Treasuries are used as the baseline for discount rates for near riskless securities

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24. However, in low rate environments (which we are in right now) it can skew the appropriate discount rates and valuations

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25. You should attempt to use the higher normalized interest rates as your baseline in finding an appropriate discount rate

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26. As you can imagine, the value of the business is influenced heavily by the discount rate you choose

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27. And discount rates are ultimately influenced by interest rates

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28. This brings us back to the question, “What is the right interest rate I should be using to help with choosing the discount rate?”

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29. As a general rule, in a low rate environment, I will use a higher discount rate to protect against the eventual increase in interests rates from the economy growing quicker than anticipated or as a deterrent to inflation

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30. We will use a conservative discount rate of 10%, given the high quality, sustainable nature of the business

31. , expected cash flows are divided by 1 + Discount rate)

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32. • Asset-pricing theory focuses on the determinants of discount rates or required returns

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33. Risk-averse investors do not use the riskless rate for discounting, unless the cash flow being discounted is itself riskless; the discount rate also reflects the required compensation for the riskiness of an asset’s expected future cash flows

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34. A rally—high realized returns—caused by falling discount rates will reduce feasible expected returns, rather than raise them

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35. The discount rate or the expected return contains both compensation for time and compensation for risk bearing

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36. In the pre-Markowitz world, even uncertain cash flows were often discounted using the riskless discount rate

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37. Understanding the various risk premia—“what influences expected asset returns or discount rates beyond the riskless rate?”—has been the main question in academic finance for the past 50 or 60 years

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38. The term “stochastic” in SDF emphasizes the uncertainty in time-varying discount rates

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39. These patterns hint at irrationality but could be rationally justified with timevarying risk premia (because discount rate variation is another cause of volatility, in addition to the variation of expected cash flows that Shiller focused on)

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40. [10] Cochrane (2007) argues that discount rate variation emphasizes the role of the average investor compared with the marginal investor, who is central in neoclassical finance models

41. In contrast, discount rates (factor risk premia) reflect the average demands of all investors

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42. The most compelling explanations center on the market discount rate—rational stories may be about wealth-dependent risk aversion or learning about other investors’ positions, but the irrational story of changing market sentiment seems most plausible (albeit pretty empty in content) [5]

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43. 1)—just as much as its denominator (discount rate)

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44. It is unlikely that money illusion was complete, in the sense of all investors making the mistake described above; but an insufficient adjustment for inflation effects is enough to distort market pricing, given the extreme sensitivity of equity prices to their discount rates

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45. This is not surprising, because bonds are the main asset class competing with equities for investor capital, and the bond yield constitutes the riskless part of equities’ discount rate

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46. Since stock prices reflect the expected values of discounted future cash flows, it is a mathematical identity that low earnings yields (high P/E ratios) reflect some combination of low discount rates and/or high expected earnings growth rates

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47. The discount rate may affect the riskless yield component or the required equity–bond risk premium

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48. Modigliani–Cohn (1979) argue that, when inflation is high, investors and analysts incorrectly discount real dividend streams using nominal discount rates, resulting in a price that is below fundamental value

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49. Another variant of the money illusion hypothesis says that investors and analysts actually discount nominal cash flows using nominal discount rates, but make an insufficient inflation adjustment to their nominal growth forecasts, so that here, too, high inflation implies underpriced stocks

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50. , low discount rates)

51. Similarly, unexpected stock returns in a given period can be decomposed into changing expectations of future dividend growth (“cash flow news”) and changing required returns on equities (“discount rate news”)

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52. They regress subsequent realized bond returns on five one-year forward rates (the marginal discount rates for the first, second, third, fourth, and fifth years in the term structure) and find that across maturities all bond returns seem to be predicted by the same single forecasting factor

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53. This literature is relevant for understanding both corporate bonds’ expected cash flows and their discount rate (the excess returns that bond buyers may require for bearing default risk and related systematic risks)

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54. Some academics argue that trend decline in global real bond yields fed the equity and housing market rallies (of the late 1990s and early 2000s, respectively), helping reduce discount rates in competing asset classes

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55. The standard valuation equation that relates market prices to expected cash flows and discount rates suggests that, given P/B’s two roles, other control variables can help separate the expected cash flow component from the expected return component

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56. I briefly discuss the last two:• Campbell–Vuolteenaho (2004a) split the equity market beta into two parts, the cash flow beta and the discount rate beta

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57. The discount rate beta is viewed as the “good beta” (bad news is more temporary because shocks that raise required discount rates reduce current prices but also improve future reinvestment opportunities) while the cash flow beta is viewed as the “bad beta” (poor cash flow news has a more permanent price impact)

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58. In theory, the bad beta should have a higher discount rate than the good beta

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59. This observation, together with assuming a particular asset-pricing model, allows analysts to switch between (i) real-world pricing where expected cash flows are discounted with an appropriate discount rate that includes a risk premium (which may be hard to define and measure) and (ii) risk-neutral pricing where expected cash flows are discounted with the riskless rate

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60. Cyclical variation in asset returns may not only reflect cyclical cash flow forecasts or default probabilities but also timevarying discount rates or risk appetite

61. 1)) and a discount rate that incorporates the riskless rate and risk premia (in the denominator)

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62. Finance theory says that, if markets are in equilibrium and prices are fair, then expected asset returns equal the required discount rate (thus expected returns are in the denominator—not in the numerator)

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63. If the firms are deemed equally risky, they should in theory have the same discount rates [1]

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64. They can be especially misleading whenever realized returns are persistently high (low) because of a gradual fall (rise) in the market’s expected or required returns; this is sometimes called the “repricing effect” or “discount rate effect”

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65. The cyclical fluctuations in cash flows beyond the current cycle should largely wash out, leaving a stable anchor for stock prices if markets are rational and discount rates constant

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66. Cynics argue that expected returns are deliberately overstated because higher expected return assumptions reduce the apparent present value of pension obligations (using the dubious, but often legally mandated or at least accepted, practice of using expected asset return as the discount rate for an associated liability)

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67. The discount rates for pension liabilities should not vary across institutions

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68. A lower discount rate would push many overfunded pension plans to underfunded status—arguably making them face the reality and, more generally, forcing society to deal with the pension time bomb

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69. This amount of reduction is called the discount rate (DR)

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70. In other words, using the GH model, you can make the PRP of the Dow whatever you want it to be by moving the discount rate and growth rate a smidgen in either direction

71. This is evidenced by Figure 7-8, which shows the Dow’s value using the Glassman-Hassett growth assumptions over a range of discount rates

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72. If the true discount rate is 5

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73. It helps to know, for example, how the market has reacted to new faces in the White House, rumors of war, controls on wages and prices, changes in discount rates, or just loss of confidence and “panics” in general

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74. As a rule, interest rates provide the best confirmation of basic economic conditions, and changes in the discount rate and the fed funds rate are by far the most reliable

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75. On the downside, the discount rate increase to 6% in September 1987, just after Alan Greenspan became chairman, led to the severe market break that October

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76. For the investor, the simplest and most relevant monetary indicators to follow and understand are the changes in the discount rate and fed funds rate

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77. The bear market and the costly, protracted recession that began in 1981, for example, came about solely because the Fed increased the discount rate in rapid succession on September 26, November 17, and December 5 of 1980

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78. Its fourth increase, on May 8, 1981, thrust the discount rate to an all-time high of 14%

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79. Our analysis of market cycles turned up three key market turns that the discount rate did not help predict

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80. However, the future distributions and the appropriate discount rate can only be assumptions

81. You need to assume the earnings, discount rate, and share dilution of the company in the future

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82. The discount rate is the rate at which you are going to discount the future owner income of a business in order to calculate the present value of those future owner incomes

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83. Warren Buffett suggests using the long-term Treasury rate as a discount rate

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84. For that risk, we can add a risk premium of 5 percent, so the discount rate will be 20 percent

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85. Numbers are in millions (except year and discount rates)

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86. If the price today implies a discount rate of more than 20 percent per year, we're interested

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