Investment Banking Case Study
Hey Everyone,
I need some direction here. I have been given a take home case study for an IB job interview. I am to do a valuation for a particular health care firm. Attached they have given me future revenues, COGS, gross profit, variable costs, unadjusted fixed costs, operating expenses, and EBITDA for the next 6 years. What's the best model to use in valuing. Initially I was going to use a DCF, but after looking closely I realized quite a bit of financial information was left out. What's the best way to go about this? Any thoughts would be helpful!
Thank you!
Just curious what's the best valuation model to use with EBITDA? Thanks!
Perform all the valuation methods and based on the results develop a valuation range, unless you have a really good reason as to why you would omit performing the other methods.
They didn't supply with the information to find WACC for the discount rate to use in the DCF. What should I do as far as a discount rate is concerned? Thank you for the reply
Take the median of close competitors' unlevered betas, and relever them to your firm's target capital structure
Second that!
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