You are valuing a company at year end 2019 that has a target capital structure of 40% equity and 60% debt. The estimated cost of equity is 14% and the net cost of debt is 2.5%, respectively. The estimated stream of free cash flow to the flrm(FCF)is:

Value is	2019E	2020E	202 IE	2022E	2023E
FCF	2000	2400	2800	3200	3700

The expected nominal growth rate of FCF in perpetuity is 1.75%. At year end 2019 the estimated level of interest bearing debt, cash, minorities and financial investments are 6000, 6000, 400 and 2500, respectively. The current market capitalization of the company is 61000. You investment recommendation is:

Select one:

1. Sell, as the estimated year end 2019 equity value is 60683
2. Buy, as the estimated year end 2019 equity value is 65193
3. Buy, as the estimated year end 2019 equity value is 65683
4. Sell, as the estimated year end 2019 equity value is 53683