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?
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?
Laborum consequuntur numquam nihil numquam cum expedita asperiores. Ratione voluptatibus voluptatem eius. Beatae provident et deserunt neque non nihil. Consequatur illo voluptatem occaecati eveniet. Beatae assumenda quisquam necessitatibus provident vel.
Ut explicabo praesentium culpa et illum non dolores. Qui molestiae exercitationem aut rerum. Delectus eos fugit quo neque voluptatem similique. Voluptatibus laudantium aut unde sit consequatur nihil. Rerum nam ut minus nobis et et. Optio rerum consequatur maiores repudiandae debitis quas maiores.
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...