Company valuation The following are forecasts (in $ millions) of a company's profits and future investments in new plant and working capital: Year 4 ... EBITDA Depreciation pretax profit Taxes 70 100 115 120 20 30 35 40 50 70 80 80 20 28 32 32 Investment 12 15 18 15 The company's WACC is 8.74% From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at the year 4 levels. Estimate the company's total value and the separate values of its debt and equity. After-tax profit Operating cash flow 30 42 48 48 88 50 72 83 Free cash flow 38 65 73 57 Horizon value at the end of year 4= Company's total value today%D