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FCFE & Current value

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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March 5, 2017 at 12:20 pm #375713
sami12185
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Sir what is the difference between the current value or market value of company which is normally calculated by (mv of share x No of shares in issue) and free cashflow to equity (FCFE) of a company.
I know the arithmetics but these two make me confuse.
March 5, 2017 at 6:06 pm #375755
John Moffat
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In a ideal world the two would give the same result.
In the real world they could give different results because the current MV per share is determined by shareholders expectations of the future, and they will not have the information about projected future FCFE.
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