What is the best way to determine the cost of capital for financial institutions within Asset Management, insurance, distressed portfolios etc.? I was thinking of using the CAPM to determine their cost of equity, and then find an appropriate peer group, unlever their betas, and average it. Then determine the risk-free rate and market risk premium.
However, finding a good peer group might be difficult for these companies, the information might not be publicly available. Do you guys have any tips to how I can do this?
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