Here's an excerpt from an interview between Magellan fund co-founder Hamish Douglass and AFR reporter Vesna Poljak, which appeared in the Australian Financial Review article It's all about interest rates: Hamish Douglass, 19 July 2019:

Take a business growing at 4 per cent a year, with a cost of equity of 10 per cent based off a 5 per cent risk-free rate and a 5 per cent market risk premium: you would value that at around 16.6 times free cashflow.

Now take a business growing at the same rate, with a 4 per cent risk free rate. At a 9 per cent cost of equity that would command a 20 times multiple, he says.

At a 3 per cent risk-free rate, the cost of equity is 8 per cent, and the multiple is 25.

Finally at 2 per cent 'which is where the world is at the moment' the same business would be worth around 33 times free cashflow.

The important point made by Hamish Douglass is that: