Liquidity discount on an emerging market company

Hey guys,

I'm currently doing a valuation of a company trading in an emerging market country, and the market is really underdeveloped and illiquid. My question is, due to this being a systematic risk for the entire country, is it inherently included in the Market Risk Premium, meaning higher cost of equity, which leads to a higher WACC, or do I do the entire DCF, and in the end apply a discount similar to a minority interest discount.

Thanks

 

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