how to get market value of equity and debt for unlevered beta calculation, can we use book value instead? Or we use the relative valuation for market value of equity. If i used book value for equity and market value for debt, is it possible?

Question

anonymous · Answer

i'm talking about private company case

anonymous · Answer

Use relative valuation for the market value of equity: apply the industry average PE ratio to the private company's income... You can use book debt, if you don't have the information (average maturity) to estimate a market value. Do not use book values.