What do you use for discount rate when a company’s isn’t known?
What do you use for a discount rate when the company’s discount rate isn’t published and the financials to figure it out aren’t either?
Career Resources
Career Advancement Opportunities
August 2026 Investment Banking
-
Evercore 01 99.5%
-
Moelis & Company 01 98.9%
-
JPMorgan 01 98.4%
-
Morgan Stanley 08 97.8%
-
Goldman Sachs 02 97.3%
Overall Employee Satisfaction
August 2026 Investment Banking
-
Moelis & Company No 99.5%
-
Evercore No 98.9%
-
Morgan Stanley 01 98.4%
-
Banco Santander 02 97.8%
-
BMO Capital Markets 12 97.3%
Professional Growth Opportunities
August 2026 Investment Banking
-
Evercore 01 99.5%
-
Moelis & Company 01 98.9%
-
Morgan Stanley 06 98.4%
-
Goldman Sachs 01 97.8%
-
JPMorgan 01 97.3%
Total Avg Compensation
August 2026 Investment Banking
-
Vice President (16) $429
-
Associates (48) $259
-
3rd+ Year Analyst (8) $210
-
2nd Year Analyst (25) $178
-
Intern/Summer Associate (14) $159
-
1st Year Analyst (83) $151
-
Intern/Summer Analyst (75) $101
16 IB Interviews Notes
“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”
Leaderboard
| 1 |  |
99.2 |
| 2 | |
99.0 |
| 3 | |
99.0 |
| 4 | |
99.0 |
| 5 | |
98.9 |
| 6 |  |
98.9 |
| 7 | |
98.9 |
| 8 | |
98.9 |
| 9 |  |
98.9 |
| 10 | |
98.8 |
From 10 rejections to 1 dream investment banking internship
“... I believe it was the single biggest reason why I ended up with an offer...”
Is this a private company?
Simplest way would be to look at equity research reports for listed companies that operates in the same industry and is as similar to it as possible (end clients, products, size - though probably less likely), and see what discount rate they use in the valuation section. It is sometimes given.
Financing structure will impact this, and a premium may need to be added (which will increase the discount rate for your company).
Thanks man.
Follow up question - where is a good place to relearn this stuff, aside from school?
I think Corporate Finance Institute (CFI) is good, as are the WSO and Wall Street Prep courses - CFI in particular has quite a lot of free stuff online.
Otherwise Udemy has some cheaper (under $60) courses on valuation and modelling from what I recall.
I try and avoid the overly academic stuff!
find companies in the same industry/market (public) with similar capital structures, preferably in a similar region.
Animi laborum repellat sint id. Sit laboriosam quisquam nostrum repellendus in. Hic ipsa nihil voluptas.
Eum nobis repellendus dicta accusamus illo. Est sed cupiditate aut et. Commodi voluptatibus non sunt aut. Non ex sit et.
Voluptatem repellat cupiditate repudiandae consequatur rem debitis. Velit molestias voluptas quam. Cupiditate non voluptas minima et dolorum. Laudantium a reprehenderit qui repellat ipsam. Repudiandae voluptas vero aut nam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...