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Valuation Question
If we take the pepsi model you went over for example. once we have taken the PV of unlevered FCF and the terminal value (by taking a multiple to EBITDA), how should we think about the cash and debt in arriving at the equity value? If we had projected the balance sheet out to the terminal value date ...
If we take the pepsi model you went over for example. once we have taken the PV of unlevered FCF and the terminal value (by taking a multiple to EBITDA), how should we think about the cash and debt in arriving at the equity value? If we had projected the balance sheet out to the terminal value date in the first place, then we should deduct the PV of the net debt from the PV of the CF's plus terminal value, and not the future values? or can we also deduct today's net debt, if somehow we did not project the balance sheet out to the terminal value date? was this how you went about it with the Pepsi example?
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by Guest 1.
added 11 years ago