Ask your own question, for FREE!
Finance 24 Online
OpenStudy (anonymous):

HI Professor,I'm trying to evalute a Zimbabwean company but am not sure what valuation methodology I should use. The country doesn't have treasury bonds/bills,& the commercial lending rates ranges from 1.5% to 35%.The country has also started using USDollar as one of its main currency.If I use any methods that require a discount rate (e.g. DCF, DDM),what is the most correct risk free rate to use? I thought of using comparable companies' forward multiples from Bloomberg consensus,but unfortunately there are no forward consensus available for the selected peers.I will appreciate your help.

OpenStudy (anonymous):

Do your analysis in an alternate currency (South African rand, for instance). You will still have to estimate exchange rates with that currency, but it will be better to do that than try to estimate numbers in the local currency.

OpenStudy (anonymous):

Thanks!

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!