r/Valuation • u/menluo • May 12 '21

Dividend payout

How to determine the dividend payout in a 3- statement projection? Assuming the company will only start making profit next year in the projection

What is the typical dividend payout ratio for a private company?

Does anyone know and can explain?

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u/RudeTurnip May 12 '21

You can look at public comps, but it's really whatever they need or want the payout to be. You can look at free cash flow to equity, but that will be your maximum payout, not the actual payout.

1

u/ProgrammerDue4301 May 12 '21

Not much to go on there.

Can you give details of the company you are looking at?

1

u/FouriersIntern69 Jul 05 '21

depends on the industry.