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Revenue EST 2023 EBIT (after-tax) EST 2023 + Depreciation EST Maintenance capital spending (long asset) EST Maintenance working capital (short asset) EST = Free Cash

  1. Revenue EST 2023
  2. EBIT (after-tax) EST 2023

+ Depreciation EST

  • Maintenance capital spending (long asset) EST
  • Maintenance working capital (short asset) EST

= Free Cash Flow 2023 EST

  1. Forecast Free Cash Flow for 2024, 2025, 2026, and for 2027 and beyond
  2. For 2027 and beyond, use the constant growth formula

FCF (2028) / Discounted by CAPM RR

  1. For 2023-2024-2025-2026-2027, calculate FCF and discount by CAPM
  2. + Cash
  3. Debt
  4. / Shares Outstanding
  5. = Equity Value per Share
  6. = Absolute Value

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