IRR calculation in a FCFF analysis
I did a valuation on a utility company and I want to calculate the equity IRR and the project IRR but I don’t know how… I was wondering if you could help..
The total FCFF is 27000 and if I discount them with WACC i get the value of 16500, subtracting net debt of 8500 we get the FCFE of 8000, right?
If we have 305 shares outstanding, our fair price would be 8000/305 = 26.22 per share.
The thing is, the actual price of this company share is 20, that gives me a upside of 31,15%, right?
My doubt is: How do I get the IRR from that?
I dont know which values to use..
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