Value of Control in a Firm
  • Value of Control in a Firm
  • Value of Control in a Firm
Originally published: 17/06/2016 13:38
Publication number: ELQ-93124-1
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Value of Control in a Firm

This model analyzes the value of control in a firm.

control valuefinancefirmmodeloptimal valuestatus quo valuevaluation

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.

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

This business tool includes
1 Excel Model File

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

download for free


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


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