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You estimate Orbit Inc. has free cash flows of $72 million arriving in 1 year, $80 million in 2 years, and $85 million in 3
You estimate Orbit Inc. has free cash flows of $72 million arriving in 1 year, $80 million in 2 years, and $85 million in 3 years. After year 3, the long term growth rate of FCF will be 2% (thus year 4 FCF is $86.7 million). Orbit has $125 million in net debt and a WACC of 14%. What is your estimate of the Enterprise Value of Orbit?
a- $285 million |
b- | $460 million |
c- | $533 million |
d- | $670 million |
e- | $800 million |
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