Question
Portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have free cash flow of $10 million next year. Its
Portage Bay Enterprises has $3 million in excess cash, no debt, and is expected to have free cash flow of $10 million next year. Its FCF is then expected to grow at a rate of 5%
per year forever. If Portage Bay's equity cost of capital is 10% and it has 8 million shares outstanding, what should be the price of Portage Bay stock?
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The Company Valuation Playbook Invest With Confidence
Authors: Charles Sunnucks
1st Edition
1838470816, 978-1838470814
