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Value of Control in a Firm - Excel Model
  • Value of Control in a Firm - Excel Model
  • Value of Control in a Firm - Excel Model
Originally published: 17/06/2016 13:38
Last version published: 02/02/2018 14:50
Publication number: ELQ-93124-2
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Value of Control in a Firm - Excel Model

This Excel model analyzes the value of control in a firm.

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,092
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 62
23 reviews1,797 views|Start the discussion!|Bookmark download for free
control valuefinancemodelvaluationfirmstatus quo valueoptimal value
Description
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.

- Prof. Aswath Damodaran

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This Best Practice includes
1 Excel Model File

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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


4.7 / 5 (23 votes)

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