Determining Market Value of a Private Company
Hi, how do you determine the market value of a private company? If you are using DCF, what discount rate do you use?
Trending Content - Private Equity Forum
Career Resources
bump
You could so something as simple as finding a comparable public company and using a capital structure neutral multiple. For a DCF, you would still use WACC as your discount rate, but when calculating your cost of equity (CAPM) you would just use an equity beta from a comparable public company.
Thanks @RocketToTheMoon" ., what if there isn't a comparable public company?
Molestiae vero est praesentium illum optio animi. Voluptatem cumque veniam culpa. Sit facere nihil repellat qui quas. Ratione est vero dolorum dolorem.
Facilis in aut sapiente facere porro ea exercitationem. Tempore ut dolores nisi quis. Voluptatem modi sapiente debitis consequatur hic maxime.
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...