If a company is currently not profitable and unlikely to be for the next 2-3 years, what tax rate do we use in the DCF when we tax EBIT? Is it reasonable to just use the long term tax rate?
As company generates NOLs in unprofitable years it will accrue DTAs, which you must value using appropriate tax rates. Damodaran suggest using corporate marginal tax rate, since long-term you will have to become profitable.
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As company generates NOLs in unprofitable years it will accrue DTAs, which you must value using appropriate tax rates. Damodaran suggest using corporate marginal tax rate, since long-term you will have to become profitable.
Nostrum voluptatum facilis molestiae consequuntur laudantium natus repudiandae quis. Deleniti ut eos eum voluptatibus. Et eius cupiditate voluptatem optio quis sed. Sapiente et facere nobis ea.
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