Free cash flow valuation model

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Reference no: EM132062701

Calculate present value of $1,000 bond with 9% coupon and quarterly interest payments. The bond has 15 years to maturity and 10.56% yield to maturity.

Free Cash Flow Valuation Model for Equity Pym Tech has been growing continuously over several years. There free cash flows forecast in given below. Year (t) Free Cash Flows? (FCFt)

2019 800,000

2020 950,000

2021 1,250,000

2022 2,150,000

2023 3,120,000

After 2023 the growth rate of FCF stabilizes to 9%. The weighted average cost of capital is 11%. Market value of all debt for Pym Tech is 32,000,000. Market value of preference shares is 5,000,000. Pym Tech has 1,000,000 shares outstanding. The current price of Pym Tech shares is $61.

Free Cash Flows in 2024

Value of firm in 2023

Value of firm today

Value of Equity today

Value of Per share (of common stock) today

Is the share? over/under valued

Recommendation for the stock

Reference no: EM132062701

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