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You have just graduated and are working at a small company. The CEO is thinking about going public and has asked you, the only member
You have just graduated and are working at a small company. The CEO is thinking about going public and has asked you, the only member of the team with a business degree, to estimate the value of the equity by Monday. Thankfully, you remember that you learned how to do this in your FIN class! You have come up with the following inputs to get back to the CEO:
free cash flow: $
free cash flow: $
free cash flow: $
Annual FCF growth after :
Company WACC discount rate:
Total debt: $MM
number of shares:
Please develop an equity valuation for the business using the free cash flow valuation method.
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