Question

For emerging market valuation: Do practitioners prefer to model the risk in the cash flows or in the discount rate?

Answer 1

It depends in the information you got, but normally it is easier to model it in the discount rate

Answer 2

Discount rate for Wacc Model and incremental cash flow model. Usually its benchmarked with the Market Beta\[\beta=Rm(Rm-Rf)\]. The cash flow then discounted at this calculated Beta.