I am trying to model a very capex intensive growth business. I am assuming that the business can raise debt to finance capex. When I project UFCF through 2035 and run a DCF, the result is a very negative EV because your capex spend is so high. However, when I project FCFE through 2035 and discount these back, the equity value is positive because of the benefit of adding back net debt. How do I make sense of this? Thanks a lot
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