Question
Pizza Hut had free cash flows (FCF) of $1.05mm this past year. Projected FCFs for the next five years are $1.07mm, $1.10mm, $1.15mm, $1.20mm, and
Pizza Hut had free cash flows (FCF) of $1.05mm this past year. Projected FCFs for the next five years are $1.07mm, $1.10mm, $1.15mm, $1.20mm, and $1.25mm, respectively. After five year FCFs will be constant at $1.52mm. What is enterprise value (EV) in millions if the weighted average cost of capital is 8.7 percent?
Step by Step Solution
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Step: 1
To calculate the enterprise value EV using the discounted cash flow DCF approach we need to discount ...
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Valuation The Art and Science of Corporate Investment Decisions
Authors: Sheridan Titman, John D. Martin
3rd edition
133479528, 978-0133479522
