Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I want to estimate the terninal value at year 6 based on the arithmetic average price to sales ratios, assume the data below is known,
I want to estimate the terninal value at year 6 based on the arithmetic average price to sales ratios,
assume the data below is known,
PV of OFCF for year 1 --5,
WACC after,
revenue for year 6, revenue growth rate
OFCF value for year 1-6
And the most important thing, please use average Price to sales ratio
I am not sure if this is everything needed to this estimation.
But for everyone data that needed can be replaced by a b c d e f etc.
Please show the estimated terninal value answer as a formula or an example even better.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started