WACC and COMPS
Why re-lever beta based on the median percentage debt (as percentage of capital structure) of?
Why calculateweights based on median capital structure of comps?
Why should the cap str of comps move you to the implied value? Isn't this relevant mostly for companies that are not mature? What if the company you are valuing is mature and its capital structure resembles that of the comps?
Do we take the median of comps because the law of large numbers? But within a set we would have only 5-10 companies usually so the law would not apply.
Thanks to anyone that takes a shot at this.