Value of Control in a Firm

This model analyzes the value of control in a firm.

control valuefinancefirmmodeloptimal valuestatus quo valuevaluation

This excel model helps you analyze the value of control in a firm by inputing your status quo and optimal beta, pre-tax cost of debt, tax rate, debt to capital ratio, revenues, operating income (EBIT), Pre-tax return on capital, reinvestment rate and length of growth period.

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

This business tool includes
1 Excel Model File

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

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Further information

The objective of this model is to get the following output values for a firm:

- Cost of Equity
- After-tax cost of debt
- Cost of capital

- After-tax return on capital
- Reinvestment rate
- Expected growth rate

- Value of Firm
- Present Value (PV) of Free Cash Flow for Firm (FCFF) in high growth
- Terminal Value
- Value of Firm Today

Value of Control:
- Value of Status Quo
- Value of Optimal
- Value of Control


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