Let's say I have a company with 30m cash. The company is unlevered. Therefore fcff=fcfe and wacc=cost of eq.
2 ways to value the company: 1) discount fcff --> EV 2) discount fcfe --> equity value
They come out same. But they shouldn't since there is cash and equity value is 30m larger than EV.
What am I missing here? İ'm sure it's suped basic and fundamental. Thx
| +186 | Americas M&A League Table Q2 Updated | 75 | 5h |
| +135 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 29 | 38m |
| +115 | Restructuring: Anti-climactic Experience | 30 | 5h |
| +85 | IB Net Worth / Savings Check | 35 | 2h |
| +75 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 12 | 2d |
| +51 | Boutique firm wants access to my LinkedIn? | 40 | 1d |
| +39 | Investment Banking is Hard | 17 | 1d |
| +37 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 12 | 1h |
| +31 | PWP vs BofA | 23 | 13h |
| +27 | Who pays the highest right now? | 14 | 13h |
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.
Quis molestiae consequatur autem. Consequatur aspernatur quod cum vel veniam quae eligendi voluptatem. Veritatis corrupti consequatur ut suscipit doloremque est aperiam. Et consectetur autem similique labore aspernatur deserunt aliquid est.
Rerum et quod adipisci autem eos. Et aut iure laudantium magnam magnam impedit veniam. Nihil blanditiis quia nihil accusamus. Voluptatem ut reiciendis sint. Velit eveniet in eius omnis molestiae accusamus expedita. Distinctio temporibus id cupiditate voluptatem et. Aut quis nisi et tempora.
Veritatis velit aut enim provident blanditiis labore. Voluptatem reprehenderit et ab sed. Eligendi qui est non delectus illum. Incidunt molestiae quis provident magnam inventore velit reprehenderit.
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...