Discount Rate Myth 3: The Discount Rate cannot change in a DCF

In this session, the third of five on discount rate myths, I look at the widely held view that the discount rate in a DCF is a constant. In reality, discount can and should change over the forecast period of a DCF to reflect changes in business, life cycle and profitability that you see in the company that you are valuing. I suggest a simple framework for thinking about how to make these changes. Slides: Blog Post: