Valuation using partial income statements
I have a case study where I have to create a valuation for a company and I was given an income statement with a range from 2015-2025, with the IS going down to EBITDA. This rules out DCF because I don't have cash flows, I was going to use comps but seeing as I have future projections as well, how would I go about valuing this company?
You can run comps/trans.
If you truly only have down to EBITDA and no CF/BS, you can look at your comps and assume D&A and capex. Then you could run a DCF though it'll be very rough estimates. This is magnitudes easier if you have D&A, because then you just assume a given tax rate and optimal capital structure based on comps.
Thanks for the reply. Sadly, I don't have CF/BS and don't have D&A but I am using a foreign so I was going to use comps for D&A/CapEx and then that country's tax corporate tax rates to make it a bit more accurate. If this sounds like a horrible idea please let me know but thanks again for your help
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