What is talsa intrinsic price based on a fcf valuation

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Question - Talsa, Inc., an all-equity firm, operates in the growing electric vehicle market. Over the next three years (T = 1, 2, 3), Talsa, Inc., is expected to generate FCF of $2.4 billion, $3.6 billion, and $5.0 billion. After Year 3, FCF is expected to grow at a constant rate of 2.0 percent per year, resulting in an Exit Value of $51.0 billion. Talsa has 500 million shares outstanding. What is Talsa's intrinsic price/share based on a FCF valuation of the firm?

Reference no: EM133133949

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