I'm creating a DCF for a company that I've been looking at. It has a large nol, and won't be able to use the entire figure in the projection period, unless I stretch it out to a period where my projections will be completely off.
One suggestion I've been thinking about is to do the DCF normally, and then find the PV of the nol.
Does anyone have any other suggestions, and what discount rate would you use to discount the PV tax savings on the nol?
Thanks.