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Discount rate and its parameters in the Czech Republic
[Diskontní míra a její parametry v České republice]

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  • Jakub Říha

Abstract

This article discusses the main parameters for deriving discount rates at the WACC level using the CAPM in the Czech Republic for company valuation using the income approach. The article first summarizes the observed practice in the Czech Republic, then describes selected parameters of the discount rate, including model examples of various assumptions for the given parameters. Last chapter of the article contains brief reflection on discount rates for valuation of start-ups.

Suggested Citation

  • Jakub Říha, 2025. "Discount rate and its parameters in the Czech Republic [Diskontní míra a její parametry v České republice]," Oceňování, Prague University of Economics and Business, vol. 18(1), pages 47-60.
    • Handle: RePEc:prg:jnloce:v:18:y:2025:i:1:id:300:p:47-60
    DOI: 10.18267/j.ocenovani.300
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    References listed on IDEAS

    as
    1. Blume, Marshall E, 1975. "Betas and Their Regression Tendencies," Journal of Finance, American Finance Association, vol. 30(3), pages 785-795, June.
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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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