Can I just take current stock price (and make it a negative number) and terminal stock price...and calculate IRR with just these two figures?
To get terminal stock price, I would project FCF at terminal year and multiply it by X multiple
Do I need to discount this terminal FCF number before I calculate the IRR?
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You ignore leverage and dividends this way.
I would add dividends (if XYZ stock paid them)...but I'm just assuming here that no dividends are paid.
I don't have to discount the terminal FCF doing it like this, right?
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