How should I treat short term debt in a dcf? I know this has been asked, but what changes in this instance is that the company I am valuating only has 50M in short-term debt; no LT debt. I know this isnt included in NWC, but where would I implement this in the model? What im doing is im getting the levered fcf since its only 1 interest expense and using cost of equity for the discount rate. Also, since the company Im valuating is in a growth industry, has been unstable lately, has a beta of 0.4, and only has 1 major competitor (cant use different betas), should I still be using CAPM for CoE? I put the Market return [11%] as my CoE because a 6% discount rate seemed very low.
Dont freak out thinking that I should know this stuff, Im not an analyst or anything and have not taken any finance classes, haha. Im just starting to learn this stuff.