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You are valuing your business ready for its initial public offering. You have determined the most recent annual (2021) cash-flow to the firm, was $30
You are valuing your business ready for its initial public offering. You have determined the most recent annual (2021) cash-flow to the firm, was $30 million. You expect that these cash-flows will increase at an 10% annual rate (g1) over the next two years. At the end of two years (the end of 2023), the cash-flow growth rate will drop to 5% per year (g2) in perpetuity. The firms WACC is 15%. Calculate the expected value of your firm.
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