If you think the discounting rate is too high but yet Walgreens stock is still undervalued; I guess you would be a buyer!! The discount rate is obviously arbitrary. But to answer your question, I am a value investor I demand a 10% return on my money as a minimum. Thus when I want forecasted present value of a stock I use a discount rate of 10%+ inflation. Remember I said I am a value investor, this hard and fast rule enforces a little more discipline on my buying habits. But I am glad to see that you know what a discount rate is, most don't!!