shareValConstantG: Calculates the share value from total Equity Value (based on...

In stockAnalyst: Equity Valuation using Methods of Fundamental Analysis

Calculates the share value from total Equity Value (based on single stage constant growth) that is divided by number of outstanding shares.

Description

Calculates the share value from total Equity Value (based on single stage constant growth) that is divided by number of outstanding shares.

Usage

shareValConstantG(FCFE0, g, WACC, shares)

Arguments

FCFE0	A number.
g	A number.
WACC	A number.
shares	A number.

Details

According to information provided by Jerald E. Pinto (2020), the method shareValConstantG is developed to compute estimated value of the equity when FCFE is growing at a constant rate for the values passed to its three arguments. Here, FCFE0 is given amount of future Free Cash Flow to the Equity in millions of dollars, g is constant rate of growth under single stage constant growth model, WACC is Weighted Average Cost of Capital, and shares is number of shares in millions.

Value

Input values to four arguments FCFE0 g, WACC, and shares.

Author(s)

MaheshP Kumar, [e-mail]

References

Pinto, J. E. (2020). Equity Asset Valuation (4th ed.). Wiley Professional Development (P&T). https://bookshelf.vitalsource.com/books/9781119628194

Examples

shareValConstantG(FCFE0=1.8,g=0.08,WACC=0.12,shares=1.5 )
shareValConstantG(FCFE0=700,g=0.05,WACC=0.102,shares=200)

stockAnalyst documentation built on Sept. 13, 2022, 5:07 p.m.