Corporate Finance Valuation: FCF, APV, WACC, and Terminal Value

EBIT

operating income

taxes

income taxes + change in deferred taxes

tax shield

tax rate x interest expense

req cash

change in 5% revenue OR change in cash on BS

NC expenses

Asset impairment + Depreciation + Amortization

Working capital

(Non cash current assets + other assets) - (Current liabilities - Current LTD + Non current Liabilities)

CAPEX

Change in ppe + change in intangible assets + amortization

FCF

EBIT - taxes - TS - req cash + nc expense - NWC change - CAPEX

APV

FCF / (1 + rua) ^N

WACC

FCF / (1 + WACC rate) ^N

TCF

Final FCF x 1 + Ter

TV

TCF / ( rua OR wacc / ter)

TV APV

Tax shield / (1 + rua) ^N

Final TV

TV / (! + rua OR WACC) ^N

int rate for debt

interest exp / amount of debt

amount of debt

current ltd + ltd

equity

rf now (beta x (market - rf over time))

debt

int rate for debt x (1 - marginal tax rate)

equity wt

equity / total cap

debt wt

debt / total cap

WACC rate

(debt wt x debt) + (equity wt x equity)