how do you value a private company which is not listed,incase of a M&A where the target company is private and in normal case where u are valuing using DCF

Question

anonymous · Answer

Is the same process, you should forecast the financial statements and construct the FCF, but be consistent with your calculations, remember that for one case you discount with the WACC and in the other with the cost of equity, it depend if it is cash flows to the firm or cash flows to equity. Finally to compute the Ke you should use comparables or sector betas.... Is this helpful? If you need something else pls ask...