I am assessing a wellness gym company. I was looking its beta to determine the cash flow discount rate, but there's nothing similar in Damodaran. Any of you can give an advice for doing so?

Question

anonymous · Answer

look out for the publicly traded companies in similar business ( wellness gym) ..if their are no companies go global search for the companies outside you country but with in the similar business line .  get their beta use the bottom up approach (Damodaran Sir's approach) to arrive to get the betas.

anonymous · Answer

There are two listed gym companies that I have found. Bally Total Fitness and Town Sports International. There may be more. Another factor that you may consider is whether the company that you want to value have similar business models as those comparable firms. Some gym companies are more like franchises and others just own their gyms. So it's important to also consider the business model to get a better comparable firm. Hope this is helpful.

anonymous · Answer

sorry I think Bally Total Fitness has been delisted but Town Sports is public and active