Originally published: 11/07/2016 13:07
Last version published: 02/02/2018 14:49
Publication number: ELQ-43096-2

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)

by Prof. Aswath Damodaran
Professor at NYU Stern School of Business

with NYU Stern School of Business
An Education in Possible

116 reviews7,182 views|Start the discussion!|download for free

finance valuation fcff fcfe reconcile

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

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Further information

Objectives

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

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