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Discount on enterprise value

Writer: Thomas Tsang
Thomas Tsang
May 29, 2023
1 min read

When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC).

But apply the discount on Equity value would lower the value as discount also applied to cash and debt and surplus assets.


 
 
 

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