Hey Monkeys,
Hope you are familiar with Damodaran's way of FCFE...because it's kinda different from the usual banking way of using FCFE...
Anyway, I am working on a school project to value Marriott(NYSE:MAR). The company is so screwed up that when I seperate Operating Assets and Operating Liabilities to get Equity Reinvestment (change in Operating Equity), I find the Equity Reinvestment is negative (Operating Equity is decreasing over the past 6 years...)
In that case, the whole g=bROE=Reinvestment rate * Operating ROE sht doesn't make any sense if forecasted based on historical data...
Wondering how should I make reasonable assumptions and adjustment if I have the the g=b*ROE fomula...
Thank you so much in advance!
