Hello,
I am assigned with valuating a state-owned (not for profit) airport that the government is contemplating privatizing. The airport has its financial statements up for the public.
I have already built an FCFF model, my questions are the following:
- What discount rate to use? note that the airport is 100% debt financed
- How should I approach relative valuation? There are no similar publicly traded airports to compare it with, i.e. I don’t have the value of similar airports.
Thank you.