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?
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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?
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