The discount rate in emerging markets: A guide

The paper deals with investments in real assets in developing countries. The traditional practitioners' approach of incorporating a country risk premium is put into perspective, and an account is given of a selected group of models for discount rate determination in both segmented and integrated markets. On this basis, the most promising models for real asset valuation in emerging markets are selected and a sort of guide as to the course of action when performing valuations in emerging markets is proposed.