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Use the following data to calculate your stock value. Additionally, note the following: There are 5 0 million shares outstanding Free cash flow ( FCF
Use the following data to calculate your stock value.
Additionally, note the following:
There are million shares outstanding
Free cash flow FCF and earnings will grow at constant rate of
Firm's equity beta is
Riskfree rate is and market return is
Total debt market value is same as the book value of debt
If we use the FCF Free Cash Flow model,
QUESTION # We first need to find the FCF which is
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million dollars.
QUESTION # Asset beta needs to be calculated, which is approximately
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QUESTION # Stock value per share using FCF model is therefore approximately
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$
per share.
Ba;lance sheet in millions
Current assets
fixed Assets
total asset
Current liablility
Fixed debt
total equity
Total liability and equity
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