Valuation: Free Cash Flow to Firm (FCFF) vs Free Cash flow to Equity (FCFE) Excel Model
  • Valuation: Free Cash Flow to Firm (FCFF) vs Free Cash flow to Equity (FCFE) Excel Model
Originally published: 11/07/2016 13:07
Last version published: 02/02/2018 14:49
Publication number: ELQ-43096-2
View all versions & Certificate
certified

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

Excel Valuation model that reconciles FCFF (Free Cash Flow to the Firm) and FCFE (Free Cash Flow to Equity)

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

- Prof. Aswath Damodaran

Side note: If you have appreciated this model, feel free to give it a rating/review!

This business tool includes
1 Excel Model

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

download for free

Add to bookmarks

Discuss

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


keyboard_arrow_leftkeyboard_arrow_right

More tools from Prof. Aswath Damodaran

See all
keyboard_arrow_leftkeyboard_arrow_right

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

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

please wait...