Liquidity discount on an emerging market company
Hey guys,
I'm currently doing a valuation of a company trading in an emerging market country, and the market is really underdeveloped and illiquid. My question is, due to this being a systematic risk for the entire country, is it inherently included in the Market Risk Premium, meaning higher cost of equity, which leads to a higher WACC, or do I do the entire DCF, and in the end apply a discount similar to a minority interest discount.
Thanks
Hic doloremque et aliquam consectetur praesentium. Asperiores id aut pariatur vitae et. Aut exercitationem at dolorum a fugit rem amet temporibus. Nostrum et esse illum et. Magnam incidunt enim aut est eos recusandae quisquam sunt. Quia ducimus voluptatem fugit soluta.
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...