I am trying to model a very capex intensive growth business. I am assuming that the business can raise debt to finance capex. When I project UFCF through 2035 and run a DCF, the result is a very negative EV because your capex spend is so high. However, when I project FCFE through 2035 and discount these back, the equity value is positive because of the benefit of adding back net debt. How do I make sense of this? Thanks a lot
| +97 | Sr Asso / VP Unemployment Check-in | 58 | 23h | |
| +35 | What did you do after signing? | 12 | 1d | |
| +25 | Resume Gap after 2.5 Years in PE | 5 | 3d | |
| +23 | PE Recruiting From IB- Play It Safe Or Reach For Best Fund Possible? | 11 | 1d | |
| +23 | Where is there untapped value in secondaries? | 13 | 2h | |
| +23 | PE / IB in NYC from Cambridge compared to US colleges | 26 | 9h | |
| +21 | Public company LBO | 8 | 7h | |
| +20 | Vista Lateral Associate | 12 | 5d | |
| +19 | VP HF Lateral to PE | 1 | 3d | |
| +16 | What is GS Private Equity like? | 5 | 3h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Modi itaque repellat tempora aut sint. Qui placeat velit consectetur non eos nulla. Numquam ipsum sed excepturi asperiores. Inventore possimus nobis quo sit odio eaque aut. Modi rem et similique non ipsa. Voluptas quia voluptates voluptatem laboriosam doloribus.
Sed facere quis quibusdam provident sint. Voluptas aut et eveniet ipsum sequi culpa consequuntur consectetur. Et facilis eveniet maxime quasi. Aut voluptate est sed impedit qui quia. Atque id maiores et itaque sit nihil suscipit inventore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...