You want to value Cougar Exploration Co. They are a mid-major oil and gas company. You estimate that their FCF for the next 4 years will be $120 M, $129 M, $125 M, and $156 M, respectively. After 4 years, the company will be similar to industry peers who are typically valued at an EV/EBIT multiple of 8. Your estimate of the EBIT in year 4 is $95 M. If Cougar Exploration Co's WACC is 11%, what is the enterprise value of this company? (Answer in millions. Ex: For 13,340,000, put 13.34)

Answer rating: 100% (QA)

To calculate the enterprise value EV we need to discount the future free cash flows FCFs to their pr... View the full answer