FCFF

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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November 13, 2019 at 4:44 am #552366
toushiga
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Hello Sir, when using FCFF to find the equity value of the company, will it deducted all the liabilities of the company(included current liability) or only for non current liabilities and why? Thank you.
November 13, 2019 at 10:54 am #552408
John Moffat
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Only non-current liabilities.

Discounting the FCF at the WACC gives the total value of the business, which is the equity plus the long-term debt borrowing.
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