This is an interesting approach, but it would be nice what assumptions do you use for the terminal growth / exit multiple used to then reverse-engineer the implied cost of capital from current sell-side analyst expectations.
I think that is a crucial assumption not mentioned here and that can make this method just as volatile as multiples.
This is an interesting approach, but it would be nice what assumptions do you use for the terminal growth / exit multiple used to then reverse-engineer the implied cost of capital from current sell-side analyst expectations.
I think that is a crucial assumption not mentioned here and that can make this method just as volatile as multiples.