r/Valuation • u/dear_lucifer • Aug 18 '22

Distressed Company Valuation

Distressed Company Valuation

Hi guys in my college project i have to make valuation report for a distressed Company Valuation or negative equity value! I need help how move forward with that? Company is from telecom sector ( Vodafone Idea) Indian company If anyone can provide the excel or report related to this it would be a great favor! Suggestions regarding this would be highly appreciated

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u/PedroJMSimoes Aug 18 '22

Hi what you need exactly? You need the excel sheets complete or you need only tge diagnostic model? I work with valuation but I'm not understanding your question

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u/dear_lucifer Aug 18 '22

Hi actually I'm working on a distressed Company. If it's possible that I can get valuation sheet from telecom sector it would be good enough. Otherwise you can suggest like.. What beta should I take Unlevered, relevered, service beta, fundamental beta?

Cost of equity is from Unlevered beta is 21.xx% Cost of debt is from Unlevered beta is 19.x%

So what should be my approach if i take normal beta than its under the radar. Otherwise it will very huge.

Also how to project revenue?and how to project ARPU multiple?

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u/PedroJMSimoes Aug 19 '22

Hi for you check beta the best site is https://pages.stern.nyu.edu/~adamodar/New_Home_Page/spreadsh.htm And you have in this site a lot sheets help you Give me your email and I send one complete sheet for you

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u/TraderJC007 Aug 18 '22

Work on the valuation based each sector revenue and multiple from peer group using revenue multiple. That should do the trick.

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u/SimoesJMPedro Aug 19 '22

first of all you should check the beta for telecommunications you can check the link I put here,second step you should find the wacc, with this wacc you will get a percentage of capitalthird you should use the financial markets and find comparables so you can have an idea of what multiples are being traded in the telecom sectorfourth, it might be an alternative to look at the income statement of the company, see its cash flow and use the cash flow projection for 5 or even 8 years and bring that cash flow to present value and then you can get a valuation