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 share value?

Answer rating: 100% (QA)

Answer To estimate the share value of the company we can use the discounted cash flow DCF valuation ... View the full answer