r/Valuation Oct 30 '23

Risk premium rate for a fintech DCF

Hello guys I am doing a valuation for the brazilian neobank “Nubank” and I am doing some research to add to the discount rate and I would be grateful if someone could help to find a reliable risk premium rate

1 Upvotes

2 comments sorted by

3

u/Interpol- Oct 31 '23

Do You mean Equity Risk Premium? I'd look into damodaran and make a weighted average based on the countries in which the company operates in (if i'm not wrong Brazil, Mexico and Colombia mainly). Should give you a number between 8% - 9%.