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!
Amet placeat sit quibusdam. Accusamus sit minus dicta omnis omnis. Rerum eos expedita consequatur dolorem aut.
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...
Sint iusto nesciunt culpa voluptates. Placeat tempora et ipsa dolores voluptas architecto.
Nihil sit aliquid numquam labore recusandae veniam et corporis. Quia sunt velit sit quia cum ut nulla.