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Podcast: The Investing for Beginners Podcast - Your Path to Financial Freedom
Episode: Listener Q&A: Should You Adjust Your WACC for Inflation?
Description: In this episode, Andrew and Stephen get into the financial weeds to answer a great listener question from passaro94 about how inflation actually impacts a company's value. We break down the macroeconomic side of investing—explaining exactly what the Federal Reserve does, the critical differences between inflation and deflation, and how the best businesses account for these economic shifts using pricing power.
Finally, we take it a step further and explain how to practically tie inflation into your WACC (Weighted Average Cost of Capital) and DCF (Discounted Cash Flow) calculations so you can accurately va...