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A company is forecasted to generate free cash flows of $24 million next year and $24 million the year after. After that, cash flows are
A company is forecasted to generate free cash flows of $24 million next year and $24 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 7.7%. The company has $55 million in debt, $10 million of cash, and 16 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 20, what's your estimate of the company's stock price?
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