![]() Because unlevered free cash flows represent all operating cash flows, these cash flows “belong” to both the company’s lenders and owners.The discount rate that reflects the riskiness of the unlevered free cash flows is called the weighted average cost of capital.Discounting the cash flows to the present at the weighted average cost of capital That lump sum is called the “terminal value.”.At some point, you must make some high-level assumptions about cash flows beyond the final explicit forecast year by estimating a lump-sum value of the business past the explicit forecast period. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |