Valuation: Free Cash Flow to Firm (FCFF) vs Free Cash flow to Equity (FCFE)

Valuation model that reconciles FCFF and FCFE

fcfefcfffinancereconcilevaluation

Description
User must define the following inputs:
- Earnings before interest and taxes
- Expected growth for next 5 years
-Expected growth after year 5
-Tax rate
-Debt ratio for the firm
-Cost of equity
- Pre-tax cost of debt
- Return on capital in high growth
- Return on capital in stable growth

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

This business tool includes
1 Excel Model

Prof. Aswath Damodaran offers you this business tool for free!

Download for free

Ask a question

Further information

Outputs:
- Value of Firm
- Value of Equity
- Value of Debt
- Cost of Equity
- Pre-tax Cost of Debt
- After-tax Cost of Debt
- Cost of Capital

Reviews

Any questions on Valuation: Free Cash Flow To Firm (FCFF) Vs Free Cash Flow To Equity (FCFE)?

The user community and author are here to help. Go ahead!

please wait...