hood MONEY
kiwifarms.net
- Joined
- May 19, 2015
@autisticblumpkin What do you want to know? How to do discounted cash flow analysis? Take your NOPAT, making proper noncash adjusments to it, subtract your capital expenditures, +/- your changes in working capital to get free cash flows to equity. Calculate your horizon value using the perpetuity equation. Discount all your free cash flows back to present using an acceptable WACC that you obtained through the capital asset pricing model and your cost of debt. Once you have your equity value, divide it by shares outstanding to get the price you should be paying per share, you'll know if it's undervalued or overvalued.