Free Cash Flow Part 1 Flashcards
(7 cards)
1
Q
What are the 6 starting equations needed
A
Past Growth
Future growth
FCF
Company value
Equity value
Per share
2
Q
Past G equation
A
(Final year / first year) to the power of years - 1
3
Q
Future growth equation
A
Rate now x past rate
4
Q
FCF calculations
A
PBIT + non cash flows - cash investment - tax
5
Q
Company value equation
A
FCF x (1+ future growth rate) / (cost of capital - future growth rate)
6
Q
Equity value equation
A
Company value - liabilities
7
Q
Per share equation
A
Equity value / (share capital/share value)
