Building a DCF Model?
I am currently trying to build a 5-year DCF model to value a company. I have projected the Free Cash Flow over a 5 year period and at the end of the 5-year period I have a terminal value with a EV / EBITDa multiple of 13x. According to Yahoo Finance the firm's Enterprise Value is ~1.1B and its Equity Value is at ~1.2B. The sum of discounted cash flow is not even close to Yahoo's financial stats. This is largely due to the EBIT (Operating Income) is at ~9M. Is there anything I can do to increase the sum of free cash flow? What would having a DCF sum of ~$500M and an enterprise value of $1.1B mean? The investment itself has a 26% IRR.
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