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Current value of a share of sundanci stock is 1.75 USD .

What is FCFE model ?

Free Cash Flow to Equity (FCFE) , After all costs, reinvestment, and debt have been paid, a company's equity shareholders are given a cash amount known as free cash flow to equity. Equity capital utilization is quantified by FCFE.

A financial solvency ratio called free cash flow yield compares the predicted free cash flow per share of a company to its market value per share. By dividing the current share price by the free cash flow per share, the ratio is determine.

[tex]FCF{t}[/tex]=[tex]OCBt[/tex]- [tex]It[/tex]

   [tex]FCF{t}[/tex]  = Free Cash Flow

[tex]OCBt[/tex] = Net Operating Profit After Taxes

[tex]It[/tex]         = investment during period t

To know more about FCFE model visit :

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