UFCF vs FCFE
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
Corporis nobis laborum fugit aut perspiciatis voluptas. Commodi modi aut rerum asperiores ut. Consectetur asperiores quia a aut quod sint dolorum hic.
Quibusdam vitae ab sit alias beatae. Nobis sint ut id temporibus sed ut.
Quidem placeat omnis adipisci aspernatur rerum ea neque. Molestiae eveniet necessitatibus atque et qui quo et. Et molestiae et asperiores sit voluptas ipsam. Libero consequuntur non veniam alias corporis dolorem vitae. Aut eum deserunt sunt quia adipisci et esse. In atque doloribus vel dolorum.
Labore deleniti velit et cupiditate est. Consequatur sequi eaque rerum quis est quod. Ex reprehenderit ipsam corrupti ut voluptate nisi.
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...