In: Finance
Valuing the firm | Year | 1 | 2 | 3 |
Free cash flow for the next 3 years | $2,527,674.14 | $2,584,518.99 | $2,648,952.93 | |
Weighted average cost of capital, WACC | 16% | |||
Long-term growth rate of FCFs, g (since year 4) | 4% | |||
Debt | $3,000,000 | |||
Number of shares | 1,000,000 | |||
Initial cash and marketable securities |
$460,000 | |||
Terminal value | ||||
Enterprise value | ||||
Total asset value | ||||
Equity value | ||||
Equity value per share | ||||
If the stock is currently traded at $20.50 per share, how would you trade? |