DCF Valuation
I'm looking at an acquisition of a portfolio of assets - some already operational and others in the development process. Acquisition will be on a cash-free debt-free basis, but will subsequently be financed at closing with a new senior facility.
Couple of questions just to make sure I'm on the right track here:
- Does it make sense run the DCF on a purely unlevered basis? I would determine a cost of equity and discount unlevered cashflows post-CAPEX. I thought about using WACC (i.e., including cost of debt), but ended up with a circular model because there is an LTV cap on the debt.
- Enterprise value here is just the discounted value less purchase costs, right? Is the equity value just EV - debt? If the debt is a CAPEX facility that will be drawn down over time, does it make any difference to the equity value today?
Thanks!
Sint quis quae voluptas asperiores. Perferendis aliquid incidunt excepturi. Amet quae cupiditate debitis ratione. Excepturi magnam sapiente sed reprehenderit rerum dignissimos impedit. Voluptatibus ut omnis ut sapiente repellat expedita tenetur. Distinctio repellat quod sed sed quibusdam.
Autem dignissimos maiores et perspiciatis aspernatur quibusdam. Pariatur consequatur consequatur nostrum. Ipsum quis quia enim odio nihil id nesciunt.
Dolore illum ea maxime quia exercitationem. Accusantium unde quasi hic voluptas. Voluptates est nobis provident aperiam. Cupiditate iste ab velit dolores.
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...