Treść książki
Przejdź do opcji czytnikaPrzejdź do nawigacjiPrzejdź do informacjiPrzejdź do stopki
Theimpactoffreecashflowonmarketvalueoffirm
17
Thevalueofstock(marketvalue)isthediscountedpresentvalueoffutureFCF
toEquitydiscountedatthecostofequity.Inthispaperwetrytoshowhowpractical-
lystockvaluation(marketvalue)isaffectedbyFCFtoEquity.
Damodaran,Aswath[2006]definestheFCFtoEquity:
“CalculatingFCFEfromthenetincome,netincomeistakenfromtheincome
statement,minuscapitalexpendituresminusdepreciation,bothtakenfromcashflow
statementminusthechangeinworkingcapitalplusthelong-termdebtposition.
Thechangeinworkingcapitalisthedifferenceofaccountreceivableplusinventory
fromoneyeartothenextlessthedifferenceinaccountpayablefromoneyeartothe
next”.
FCFE=NI-(CE-D)-(ΔWC)+(NDI-DR),
where:FCFE=FreeCashFlowtoEquity;NI=NetIncome;(CE-D)=NetCapi-
talExpenditure(CapitalExpenditure-Depreciation);D=Depreciation;ΔWC=
ChangeinNon-CashWorkingCapitalAccount:accountreceivable,inventory,and
payable;NDI-DR=newdebtissuesareacashinflowwhiletherepaymentofout-
standingdebtisacashinflow.
Thedifferenceistheneteffectofdebtfinancingoncashflow
NDI=NewDebtIssue
DR=DebtRetired
NetBorrowing=longandshorttermnewdebtissues-longandshorttermdebt
payment.
TheabovemethodistocalculatehistoricalFCFandapplyagrowthrateunder
assumptionsthatgrowthwillbeconstantandfundamentalfactorswillbemainta-
ined.
FreeCashFlowtoEquityvaluationmodelbyDamodoran.Thesinglestagecon-
stant-growthofFCFEmodelisparalleltothesinglestageFCFEmodelwithrequired
returnonequityinsteadofweightedaveragecostofcapital(WACC).
ValueofEquity=
FCFE
1
=
FCFE
0
*(
1
+
g
)
,
Rg
−
rg
−
where:FCFE
1=expectedFCFEinoneyear;FCFE
0=startinglevelofFCFE;
g=constantexpectedgrowthrateinFCFE;r=requiredreturnonequity’s
