Hello monkeys,
Revising an old model I am finding this way to calculate the Terminal Value in a FCFE DCF.
Exit FCF from DCF (I placed the previous unlevered FCF year to the Terminal one) Terminal Value From DCF (I placed my Unlevered FCFF Terminal Value) Exit Debt (Netted) (I placed the Net Debt/cash at the last projected year) TV Discount Rate (I subtracted debt from my terminal value and discounted it at the Ke)
I get to my Discounted TV corresponding to my equity Value.
My question is, should I have just used the Exit FCFE rather than the Exit FCFF? Should I have discounted my TV using as r the Ke?
I indeed did assume Exit was last projected year.
Hope you can shed some light Best!
Fuga quisquam pariatur voluptatem autem veritatis velit. Natus non iste ut impedit. Repellendus incidunt ea dolorem odio qui ex cupiditate. Quae reprehenderit magnam quia laboriosam. Quo velit architecto rerum quam eveniet.
Aspernatur officia eum odit assumenda. Provident id id delectus cupiditate qui. Eum rerum eos dignissimos sequi earum autem. Consequuntur saepe ratione et saepe neque illum praesentium. Est voluptatem omnis pariatur dolorum rerum. Rerum et error sapiente sed ea quia in dolor.
Quasi vel et architecto sequi architecto corrupti ab. Quasi officia praesentium exercitationem molestias maiores perferendis et dolorem.
Ipsam eos debitis et quaerat. Voluptates eos voluptatem sequi labore. Reprehenderit nihil et tempore temporibus pariatur dolorem. Id iure facere omnis neque accusamus consequuntur tempore.
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...
Eos atque molestiae veniam assumenda sit consequatur optio. Ipsam perferendis eos voluptatem quia et animi.
Vel consequatur quia facere. Qui voluptatum qui ut in. Quod sed et incidunt delectus magni. Quidem dignissimos enim rerum sit ipsa sunt optio. Dolor voluptatem iure rem a aut magnam.
Nihil et expedita odit. Quas adipisci commodi quos voluptas consequatur id tempora.