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11 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Capital asset pricing model |
(r*+IP)+(MRP*Beta) |
CAPM |
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Weighted Average Cost of Capital |
(Total debt/ total capital) / cost of debt + (Total equity/ total capital) / cost of equity |
(WACC) Wavg Cost of Debt + Wavg Cost of Capital |
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Free Cash Flow |
(EBIT(1-tax rate)+Depn) - (CapEx + 🔺NOWC) |
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Sales |
Previous sales (1+sales growth rate) |
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Operating costs |
Sales * operating costs as % of sales |
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EBIT |
Sales - operating costs - depreciation |
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CapEx |
Current net fixed assets - (previous net fixed assets-current Depn) |
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Present values of FCF at t=0 |
FCF/(1+WACC)^(current year-historical year) |
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Horizon value at t=0 |
Horizon value at "current year"/(1+WACC)^#of previous years |
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Intrinsic Value per Share |
Total value of equity / #of shares |
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Discount rate to use in dividend model? |
(r*+IP) + (MRP*Beta) |
CAPM |
