Question
IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2013 you
IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2013 you initiate discussions with IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following data:
Debt: $28 million
Excess cash: $116 million
Shares outstanding: 50 million
Expected FCF in 2014: $40 million
Expected FCF in 2015: $60 million
Future FCF growth rate beyond 2015: 6%
Weighted-average cost of capital: 9.4%
The enterprise value in 2013 is $____ million?
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