What is the discount factor for a private company valuation?
Obviously there is no cost of equity and most websites seem to insist on cost of debt only, however, I feel that cost of debt does not accurately capture the volatility of the cash flows. Should I just use cost of debt and then make an additional discount to my firm value after to reflect my uncertainty?
To give context I am doing dcfs primarily for growth equity type companies, as well as some less stable mms.
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