Free cash flow to the firm, ten explicit years plus a terminal value, on assumptions you
control. Green marks a figure measured from filings; amber marks one that was chosen.
Assumptions
Case probabilities
BearBaseBull
Drag either handle, or focus one and use the arrow keys. The three always add to
100% — they are the gaps between the handles.
Valuation
Where the value comes from
Projection
Historical numbers
Sensitivity — intrinsic value per share
Cost of capital across the top, terminal growth down the side. The outlined cell is
your current pair. How far the numbers move across this grid is how much of the
answer is choice rather than knowledge.