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You want to value Cougar Exploration Co. They are a mid-major oil and gas company. You estimate that their FCF for the next 4 years
You want to value Cougar Exploration Co. They are a mid-major oil and gas company. You estimate that their FCF for the next 4 years will be $120 M, $129 M, $125 M, and $156 M, respectively. After 4 years, the company will be similar to industry peers who are typically valued at an EV/EBIT multiple of 8. Your estimate of the EBIT in year 4 is $95 M. If Cougar Exploration Cos WACC is 11%, what is the enterprise value of this company? (Answer in millions. Ex: For 13,340,000, put 13.34)
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