Question: For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You

For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You also determine that the short-term investments is worth $10,000. What is the value of the company (i.e., the estimated total intrinsic value)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution The value of the company or the estimated total intrinsic value can be calculated by summing the present value of free cash flows FCFs the pr... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!