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DCF with Terminal P / E There are many ways to value an asset. Valuation is a science, but it is also an art. Each
DCF with Terminal PE
There are many ways to value an asset. Valuation is a science, but it is also an art. Each
method may not provide identical answers, and they can sometimes be far off.
A DCF model that incorporates using multiples and free cash flow is shown on slides
for Tesla. Using a similar approach to slides value a stock with the
following information.
Assume
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
FCFE per share in time $
Assume change in capital net fixed assets and net operating working capital in time
are $ per share.
Assume the PE in time is
Assume the cost of equity the discount rate or is
What is this stock worth?
Note: Enter your answer with two decimals and without the $ sign. That is if your
answer is $ then enter
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