A company is projected to have a free cash flow of $243 million next year, growing at a 5.6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.1%. The company's cost of capital is 12.7%. The company owes $71 million to lenders and has $17 million in cash. If it has 221 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to have a free cash flow of $243 million next year, growing at a 5.6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.1%. The company's cost of capital is 12.7%. The company owes $71 million to lenders and has $17 million in cash. If it has 221 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
Projected Free Cash Flow (FCF1) = $ 243 million
Growth rate until year end 3 = 5.6%
growth rate thereafter (g1) = 2.1%
Cost of Capital (kc) = 12.7%
Calculating the Enterprise Value:
EV =
EV = $ 215.62 + $ 202.03 + $ 189.31 + $ 1823.40
EV = $ 2430.36 million
Enterprise Value = Value of Equity + Value of debt - Cash & Cash Equivalents
$ 2430.36 million = Value of Equity + $ 71 million - $ 17 million
Value of Equity = $ 2376.36 million
No of shares = 221 million
Value of Equity = Share price*No of shares
$ 2376.36 = Share Price*221 million shares
Share price = $ 10.8 per share
A company is projected to have a free cash flow of $243 million next year, growing...
A company is projected to have a free cash flow of $314 million next year, growing at a 5.9% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.1%. The company's cost of capital is 13.6%. The company owes $57 million to lenders and has $19 million in cash. If it has 207 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to have a free cash flow of $443 million next year, growing at a 4.6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.7%. The company's cost of capital is 10.4%. The company owes $121 million to lenders and has $9 million in cash. If it has 271 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to have a free cash flow of $336 million next year, growing at a 6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.3% in perpetuity. The company's cost of capital is 9.7%. The company owes $89 million to lenders and has $18 million in cash. If it has 186 million shares outstanding, what is your estimate for its stock price? Round to one...
A company is projected to generate free cash flows of $329 million next year, growing at a 5.7% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.1%. The company's cost of capital is 13.3%. The company owes $171 million to lenders and has $37 million in cash. If it has 114 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to generate free cash flows of $429 million next year, growing at a 4.7% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.6%. The company's cost of capital is 10.8%. The company owes $246 million to lenders and has $27 million in cash. If it has 164 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to generate free cash flows of $443 million next year, growing at a 4.6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.7%. The company's cost of capital is 10.4%. The company owes $257 million to lenders and has $26 million in cash. If it has 171 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
Question 10 Homework • Unanswered A company is projected to generate free cash flows of $414 million next year, growing at a 4.9% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.6%. The company's cost of capital is 11.1%. The company owes $236 million to lenders and has $29 million in cash. If it has 157 million shares outstanding, what is your estimate for its stock price? Round...
A company is projected to generate free cash flows of $643 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 2.7% rate in perpetuity. The company's cost of capital is 8.1%. The company owes $179 million to lenders and has $59 million in cash. If it has 189 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to generate free cash flows of $800 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.5% rate in perpetuity. The company's cost of capital is 12.0%. The company owes $100 million to lenders and has $90 million in cash. If it has 150 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.
A company is projected to generate free cash flows of $800 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.5% rate in perpetuity. The company's cost of capital is 12.0%. The company owes $100 million to lenders and has $90 million in cash. If it has 150 million shares outstanding, what is your estimate for its stock price? Round to one decimal place.