Find the estimated intrinsic value

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A stock has no dividends. Last period's FCFF is $4.31 and it has an estimated annual free cash flow growth rate of 7.6%. The company should maintain this growth rate for 3 more years before it decays to the estimated long term growth rate of 2.46%. The WACC for this stock is 6.1% and its current ROE is 29.5%. You also found out that the firm has debt per share of $46.61. What it the estimated intrinsic value using the multistage FCFF method? State your answer as a dollar amount with two decimal places.

Reference no: EM133074152

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