The cost of capital in emerging markets is a complex and dynamic concept that requires careful consideration of various factors. This chapter highlights some of the fundamental themes related to the role and computation of the cost of capital in discounted cash flow analysis. We start with a literature review around the development of the cost of capital in valuation before discussing the key approaches, challenges, and solutions in an emerging market context before illustrating a step-by-step example of how to estimate the cost of capital for a privately held emerging market company. It contributes to the academic and professional literature by blending theory and practical themes to a key and often misunderstood component of emerging market valuation analytics. The practical framework also seeks to demystify the use of WACC for emerging markets by illustrating the necessary inputs and financial rationale to develop robust cost of capital estimates.