DCF Inputs
I am working on a DCF, in particalur the WACC calculation.
I am clear on the theorectical concept of WACC (WACC = cost of equity * % equity + cost of debt * % debt * (1-tax)) but am struggling to get inputs
- How do you normally get the cost of debt value? This is for a private company, so no publicly traded bonds. Do you its comps?
- What about Beta - how do you get this?
- We are also including a country risk premium to the CAPM formula - how should I get this?
Comps for beta and cost of debt
You can use academic sources for the country risk premium - NYU Stern (Damadoran) publishes regularly
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