Hello I was looking through an analyst report (click here: http://personal.crocodoc.com/MsZUTWp)
And he uses a discount multuple in his NAV model (pages 6 and 11) of 0.42x and 1.54x.
Just wondering, how exactly do you come up with one? What does the math look like? Do they account for TVM? I know they account for risks, but why 0.42x, and why not 0.60x or 0.80x. Any help will be very appreciated. Thank you!!