
Publication number: ELQ-91506-1
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Simple FCFF Model (Free Cash Flow for the Firm)
A complete FCFF model that allows for changing margins and has default assumptions built in
Prof. Aswath Damodaran offers you this Best Practice for free!
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Further information
The objective of this model is to get the following output values for a firm:
- Terminal cash flow
- Terminal cost of capital
- Terminal value
- PV(Terminal value)
- PV (CF over next 10 years)
- Sum of PV
- Probability of failure
- Proceeds if firm fails
- Value of operating assets
- Value of equity
- Value of options
- Value of equity in common stock
- Number of shares
- Estimated value /share
- Price
- Price as % of value
If you want a quick, all-in-one model to value a company with relatively few inputs, try this.