Publication number: ELQ-67808-1
View all versions & Certificate
Two-Stage Free Cash Flow to Equity (FCFE) Discount Model
Value the equity in a firm with two stages of growth
Prof. Aswath Damodaran offers you this Best Practice for free!
download for free
Add to bookmarks
- Cost of Equity
- Proportion of Debt: Capital Spending
- Proportion of Debt: Working Capital
- Current Earnings per share
- Change in Working Capital
- Current FCFE
Growth Rate in Earnings per share
- Growth Rate in capital spending, depreciation and working capital
- Working Capital as percent of revenues
- Free Cashflow to Equity
- Present Value
- Growth Rate in Stable Phase
- FCFE in Stable Phase
- Cost of Equity in Stable Phase
- Price at the end of growth phase
- Present Value of FCFE in high growth phase
- Present Value of Terminal Price
- Value of the stock
- Value of assets in place
- Value of stable growth
- Value of extraordinary growth
- Value of the stock
Assumptions in the model:
1. The firm is expected to grow at a higher growth rate in the first period.
2. The growth rate will drop at the end of the first period to the stable growth rate.
3. The free cashflow to equity is the correct measure of expected cashflows to stockholders.
Write a review
People using this Best Practice also downloaded
Value of Control in a Firm - Excel ModelThis Excel model analyzes the value of control in a firm.1,451add_shopping_cart
Merger Synergy Valuation Excel ModelThis Excel Model estimates the value of synergy in a merger.2,780add_shopping_cart
Merger & LBO Model Valuation ExcelThis LBO model in excel analyzes the value of equity and the firm in a leveraged buyout operation.9,814add_shopping_cart
Free Cash Flow for the Firm (FCFF) Valuation Excel ModelAn Excel Model to value firms with operating income that is either positive or can be normalized to be positive.1,692add_shopping_cart
Discounted Cash Flow (DCF) Excel ModelThis DCF Excel Model provides a rough guide to which discounted cash flow model may be best suited to your firm.1,724add_shopping_cart
Dividend Discount ModelA complete dividend discount model that can do stable growth, 2-stage or 3-stage valuation.3,314add_shopping_cart
FCFF (Free Cash Flow for the Firm) Excel Model with exposure to country riskAn Excel FCFF Model allowing the user to enter a measure of company exposure to country risk when making a valuation662add_shopping_cart
FCFE (Free Cash Flow to Equity) Valuation ModelA complete FCFE valuation model that allows you to capital R&D and deal with options in the context of a valuation model1,890add_shopping_cart
High Growth Firms Valuation ModelValue tough-to-value firms, with negative earnings, high growth in revenues and few comparables544add_shopping_cart
Simple FCFF Model (Free Cash Flow for the Firm)A complete FCFF model that allows for changing margins and has default assumptions built in445add_shopping_cart
Valuation of PremiumsA model to value the premium you should pay for growth in either an intrinsic valuation or a relative valuation.205add_shopping_cart
Black-Scholes converted for Binomial TreeConverts the standard deviation input in the Black-Scholes model to up and down movements in the binomial tree.2,814add_shopping_cart
Any questions on Two-Stage Free Cash Flow To Equity (FCFE) Discount Model?
The user community and author are here to help. Go ahead!