DCF → absolute

Relative

☐ DCF →

Value = Pvcfuthhecoshfloms
↓
Entebbe Market
Equity Value Market
of
value of
cash
+ Debt
Equity
-

→
-

↳
Equity shares
aJᵈt=&F7Faee cashflow to

equity
cash
Netforofit → accrual
basis

equity → cash blow 2

investors available .

Cash flow from care oferatios

fct-E-Netl-Defaeciationwpaof.i
-

Reinvestment-
WC
1-
Ase
Gon cash

Debt
-

expense>
-

Cafesc

working capital
2) Capital Escfendituhe
(acquiring fixed assets
that contribute
to care
operations>
eg→ factory i

machinery I
land
b) FCFF →

cash flouiibihwailable.to
both ( equity + debt) investors
:÷÷:::÷
Ewing
+ Interest G-
Tax hold

+ to
→
Npetofiet Deh
-

lo to = 0
= -
DCF → discounted cash
flour
1) FCFE discount → value
e-= 0

I
of equity
100
2
(Intrinsic
110 value>
3
no 1¥ 2

& 13°
E¥→¥¥→
Shareholder 's
BV of equity
=
capital CIPA
+
Retained soinmgs
BV of debt = loan taken
discountorate → cost of equity
Caefhesents disk
d-
Minimum required
date of return
for equity
investors .

CAPM-3
capital asset thing
model

ke =
9ft B C rm
c-
-
h f)
§ mIÉ
s
cost of
average
equity return
measure of systematic
risk
Gf → risk-free
.

rate
2> FCFF discount → enterprise
value
discount
→ WACC
rate
weighted ang
costal capital
a-
minimum
rate
required
of return
for ( equity tdelst)
investors .

WACC =
Weight ✗ ke
equity
+
weight ✗ kdlttax
Debt
salt
total capital =
100
Equity = 60 = 60-1 . We
Debt 40 Wd
=
=
hot .
 Financial
Dividends
services
•
Terminal value →

§] -
s estimate

halt -5 lot .

growth
TV
ninth year =
CF
}
✗ ( ttg )

Tuy

¥mt¥es "
 *

E÷÷:::
"
2 10 75 61
.

6575

valuation →
•
Relative
valuation multiples
Ev /EBITDA
☒
Pls
P / FCF
?⃝
 PIE = 20

Nest geaa=_⑤
fhqepeuice =%§ʰ→ = 20

Price = 1000