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You are valuing a company today, using the FCF valuation method. The company's most current cash flow is 135 million, and you forecasted the free
You are valuing a company today, using the FCF valuation method. The company's most current cash flow is 135 million, and you forecasted the free cash flows for the next 4 years in the table below. You estimate that the company will grow at the same rate as its industry, 3.5%, after 2021 indefinitely. If the cost of capital is 10%, what is the value of this company?
Year FCF (Million)
2018 165
2019 185
2020 235
2021 255
3426.92 million
3789.46 million
5871.79 million
4610.06 million
4823.96 million
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