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hugofffvvv

  • 3 years ago

hi! If my firm's expecting a long-term growth of 3% and I am able to calculate the free cash flow next year, how can I go on to calculate the firm's value and later the value per share? Currently the company pays no dividends

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  1. Hayek
    • 3 years ago
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    You have to choose how many years you want to forecast your cash flow (like 4 or 5 years), and then obtain the residual value in the last year, that is dividing de last cash flow (for example year 4) by your (WACC - g), where g is the long term growth.

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