graduate student
A comparative study was conducted on the effectiveness of a simplified Discounted Cash Flow (DCF) model for valuing companies in the stock markets of Russia and Indonesia. Special attention was given to analyzing the methods for calculating the discount rate and cash flow growth rates, as well as their impact on valuation accuracy. The study utilized approaches described in international literature, particularly those applied to the Indonesian market, with subsequent comparison of results for the Russian market. It was found that the highest valuation accuracy is achieved when adjusting growth rates and applying the CAPM model with a U.S. risk premium adjusted for use in the Russian market. At the same time, the use of fixed rates or averaged growth rates leads to a significant decrease in the accuracy and stability of the models. The findings confirm the relevance of the DCF approach, provided its parameters are adapted to the specifics of emerging markets, and may be used in developing investment strategies and further academic research.
discounted cash flow (DCF), discount rate, company valuation, Russian stock market, CAPM model
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