Financial Modeling
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The DCF analysis is for 5 years, with 2006 being time = 1 (1st year).
Also, the NPV function assumes cash flows happen at the end of the
year - so 12/31/2006. So if I'm running a NPV function on the 5 years
of forecasted unlevered FCF (DCF tab, I18), then those cash flows are
all discounted to a present value at 1/31/2006 right? That would make
sense, since I am then subtracting out 12/31/2005 Debt / Cash figures
(1/31/06 in the 10-K but labeled as 12/31/05 in the Excel file) to get
to an equity value - so I am using enterprise value, cash, and debt
figures all at the same point in time.
I'm a little confused because the footnote says present values are as
of 1/31/05, not 1/31/06. If that's the case, then:
1- first year's unlevered free cash flow $1,112 at 12/31/06 - why is
that discounted back 2 years instead of 1
2- If the PV unlevered free cash flow is truly as of 1/31/05 as the
footnote says, then why am I subtracting out debt/cash as of 1/31/06
to get to an equity valuation? I'm using 2 different points in time
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