Hi guys,
I am doing some valuation work for a private asset manager. I need to do a simple DCF based on their business plan and for this I would need the Cost of Equity.
In order to do this, what would make most sense? Would I gather a list of listed comp companies, calculate their (levered) beta, take the average beta of my comp set, unlever it and then relever it to the cap structure of the firm? But how does unlevering and relevering work in the case of financial instutions, where the D/E ratio plays a different role vs. traditional firms?
