VALUATION: state-owned 100% debt, what discount rate to use?

Baginski's picture
Rank: Baboon | banana points 108

I'm valuating a state-owned 100% debt not-for-profit airport that is set for privatization.

I must use DCF,

what discount rate to use?

NOTE: I calculated WACC (which is just the cost of debt since it's 100% debt financed) and it turned out to be only 3.9%. What do?

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Comments (3)

Nov 12, 2017

What concert costs 45 cents? 50 Cent feat. Nickelback.

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Nov 12, 2017

The enterprise in my question is subject to privatization. It will not be 100% debt next year.

The purpose of the valuation is to set a selling price for PE

Nov 13, 2017