Discounted fcf approach and the data

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Reference no: EM131777623

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development? strategy, in late 2013 you initiate discussions with? IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following? data:

  • ?Debt:$ 33million
  • Excess?cash:$ 111million
  • Shares?outstanding: 50 million
  • Expected FCF in?2014:$ 47million
  • Expected FCF in?2015:$ 58million
  • Future FCF growth rate beyond?2015: 5 %
  • ?Weighted-average cost of?capital: 9.4 %

Reference no: EM131777623

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