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What is dfy implied intrinsic total enterprise

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Reference no: EM133112138

DFY Company is expected to generate unlevered free cash flow of $32.0 million, $35.0 million and $40.0 million during the fiscal years ending December 31st, 2021, 2022 and 2023 respectively. Beyond 2023, DFY expects to grow unlevered free cash flow at an annual rate of 2.5% in perpetuity. The firm has a 12.25% cost of equity, a 4.75% pre-tax cost of debt, a 1.5x debt to equity ratio and a 30% tax rate. What is DFY's implied intrinsic total enterprise value assuming a valuation date of 11/1/2021?

Reference no: EM133112138

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