Three-Stage Free Cash Flow for the Firm (FCFF) Discount Model
Originally published: 23/06/2016 13:06
Last version published: 14/12/2016 10:38
Publication number: ELQ-31890-2
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Three-Stage Free Cash Flow for the Firm (FCFF) Discount Model

Value the equity in a firm with three stages of growth

- Value of Firm
- Cash and marketable securities
- Value of Debt
- Value of Equity
- Value of Equity options issued by firm
- Value of Equity per Share

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

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Further information

Best suited for firms with shifting leverage and growing at a high growth


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