DCF & WACC
Once you have enterprise value from a DCF, how do you get to equity value and then to value per share?
Model answer
Enterprise value to equity value: subtract total debt, subtract preferred stock, subtract minority (noncontrolling) interest, add cash and equivalents, and add any other non-operating assets (e.g.,…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from DCF & WACC
- Walk me through a DCF.
- Why do you use unlevered free cash flow in a DCF and how do you calculate it?
- What is WACC and how do you calculate it?
- What are the two ways to calculate terminal value, and how do they differ?
- What discount rate do you use if you're discounting levered free cash flow?
- Two identical companies, one has more debt. Which has the higher WACC?