Modeling question: Why Terminal ( Capital expenditure- Depreciation)= 1-constant growth rate/ROE * Net income Terminal Value - change in working capital terminal value + net debt cashflow terminal value. it is in a DCF model that I am benchmarking on. I did not get this formula nor i have seen it before. Thanks in advance
ssdnola Wrote: ------------------------------------------------------- > Modeling question: > > Why Terminal ( Capital expenditure- Depreciation)= > 1-constant growth rate/ROE * Net income Terminal > Value - change in working capital terminal value + > net debt cashflow terminal value. > > it is in a DCF model that I am benchmarking on. I > did not get this formula nor i have seen it > before. > > Thanks in advance hey man, umm, what are you asking? how to do DCF? when I was first starting out, i read this doc 5-6 times. http://www.investopedia.com/university/dcf/
i am working on now right, and I am trying to get the terminal value of ( Capital expenditure-Depreciation) and i was using one DCF model as reference and they have this formula to find Terminal value of Capital expenditure. Terminal ( Capital expenditure- Depreciation)= > 1-constant growth rate/ROE * Net income Terminal > Value - change in working capital terminal value + > net debt cashflow terminal value.
hmm, sorry, i have never heard of terminal cap ex. maybe someone with better skills can help. : ( -