It is the end of 2019. In the most recent year (2019), UPipe had an EBIT...

It is the end of 2019. In the most recent year (2019), UPipe had an EBIT of $170 million. Depreciation was $34 million, increase in net working capital was $17 million and capital expenditure was $42.5 million.

Over the next 4 years, EBIT is expected to grow by 20% per year, depreciation by 15% per year, capital expenditure by 25% per year and change in net working capital by 15% per year. The annual free cash flow is expected to grow by 3% per year after 2023.

The weighted average cost of capital is 13% and the average tax rate is 21%. The firm has $430 million of debt and 10 million shares outstanding.

1. What was the free cash flow in 2019 (in $ million)?

2. What is the expected free cash flow in 2023 (in $ million)?

3. What is the terminal value in 2023 (in $ million)?

4. What is the firm value today (in $ million)?

5. What should be the stock price now?

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