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What is the future worth today?
Change an assumption. Feel the valuation move.
Live experiment
What is the future worth today?
Enterprise value818.3
Before you move a sliderHow much of this enterprise value depends on the years after the forecast?
Equity value = EV 818.3 − net debt 200 = 618.3
Read the mechanism
The years after the forecast contribute 71.1% of enterprise value. A one-point change to a permanent assumption can outweigh the whole five-year forecast. The output is conditional on the inputs; it is not a price anyone has agreed to pay.
Model assumptions and units
Made-up $m. End-of-year unlevered cash flows, a constant WACC, five explicit years and perpetual growth afterwards. WACC must exceed the terminal growth rate. The equity bridge assumes no other claims or nonoperating assets.