In the most recent year (2022), UPipe had an EBIT of $320 million. Depreciation was $64 million, increase in net working capital was $32 million and capital expenditure was $80 million. Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and working capital investment by 15% per year. The annual free cash flow is expected to grow by 3% per year after 2026. The weighted average cost of capital is 10% and the average tax rate is 34%. The firm has $590 million of debt with an average interest rate of 8% and 10 million shares outstanding.

Part 1 What was the free cash flow in 2022 (in $ million)?

Part 2 What is the expected free cash flow in 2026 (in $ million)?

Part 3 What is the terminal value in 2026 (in $ million)?

Part 4 What is the firm value today, at the beginning of 2023 (in $ million)?

Part 5 What is the value of the stock today?