I'm valuating a state-owned 100% debt not-for-profit airport that is set for privatization.
I must use DCF,
what discount rate to use?
NOTE: I calculated WACC (which is just the cost of debt since it's 100% debt financed) and it turned out to be only 3.9%. What do?
| +285 | Return Rates For Interns Are Falling? | 118 | 1h |
| +126 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 13 | 7h |
| +114 | I am a drunk MD AMA | 39 | 1d |
| +79 | UBS Offer Day | 27 | 6h |
| +64 | VP Lifestyle at Top BB Coverage Groups | 40 | 2d |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 5d |
| +51 | No return so what are the options left | 32 | 2h |
| +51 | Evercore > Goldman and I don’t think it’s particularly close anymore | 28 | 1h |
| +41 | WF Return offers | 28 | 2h |
| +41 | I hate Wells Fargo | 9 | 1h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
use the search function https://www.wallstreetoasis.com/forums/valuing-100-debt-start-up
The enterprise in my question is subject to privatization. It will not be 100% debt next year.
The purpose of the valuation is to set a selling price for PE
Laboriosam ea enim et quis autem rerum provident ut. Quidem aliquam ipsum quas. Illo dolorem et aliquid praesentium.
Totam consequatur dolorem doloribus inventore. In enim nihil repudiandae consequatur cupiditate adipisci. Ea similique soluta debitis. Quibusdam nam velit officia pariatur soluta quae.
Placeat omnis esse dolorem nesciunt deleniti. Nostrum sed esse sed voluptas. Eum quo reiciendis ea saepe voluptas aliquid amet. Et consequatur nesciunt qui non accusantium. Odit voluptatem optio adipisci excepturi corporis harum quo. Ab excepturi illo voluptas laudantium omnis sint.
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...