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You must estimate the intrinsic value of Gallovits Technologies' stock. Gallovits end of-year free cash flow (FCF) is expected to be $50 million, and it
You must estimate the intrinsic value of Gallovits Technologies' stock. Gallovits end of-year free cash flow (FCF) is expected to be $50 million, and it is expected to grow at a constant rate of 5% a year thereafter. The company's WACC is 9%.Gallovits has $100 of short term investment, $350 million of long-term debt plus preferred stock,and there are 50 million shares of common stock outstanding. What's Gallovits' estimated intrinsic value per share of commonstock?
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