McCaffery's Inc. The value of operations is the expected Future free cash flows of the company that then isdiscounted at the weighted average cost of capital (WACC) (CFA Institute, 2023). After doing the calculations, McCaffery's value of operations is $2,675,000, their total value is $3,000,000, and their value of equity is $2,000,000. By taking their value of equity and dividing that by the number of outstanding shares that McCaffery's Inc. has, which is 50,000 shares. We can see that the estimated price per share would be $40 per share. Potential investors will take the price per share and compare that to the market value. If the price per share is higher than the market value than the stock is considered undervalued and will be more attractive to potential investors; however, if it is lower than the market value, investors will see this as overvalued and may not invest (CFA Institute, 2023)