In this session, the last of five on discount rate myths, Aswath Damodaran looks at how low interest rates have skewed both actual valuations and how we think about DCF. Specifically, holding all else constant and lowering the risk free rate will cause valuations to implode but you cannot hold all else constant. As risk free rates change, so do nominal growth rates, risk premiums and even debt ratios, making the effect on value much more unpredictable.
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Watch INDX.GURU's CCO, Yvette Le Grew chat with Sky News - Technology Behind Business about disruption in the investment space.