Applying The Free Cash Flow To Equity Valuation Model In Coca Cola Hellenic

Download or read book Applying the Free Cash Flow to Equity Valuation Model in Coca-Cola Hellenic written by Maria Dimitriou and published by . This book was released on 2020 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I present the process of applying the Free Cash Flow to Equity valuation model in Coca -Cola Hellenic Bottling Company S.A. in order to determine the value of its stock. The value of the firm's stock is calculated by forecasting Free Cash Flow to Equity and discounting this cash flow back to the present at the appropriate required cost of equity. In addition to computing free cash flow to equity, this paper will show you how to calculate the expected growth rate pattern and the cost of equity. To achieve this, the Free Cash Flow to Equity was calculated from 2009 to 2011 based on a sum-of-the-parts approach that values the three main geographic businesses of the company separately: Western Europe and both Eastern Europe and West Africa. Additionally, an anticipated growth rate was used to estimate the future value of Free Cash Flow to Equity in three years. Also, the present value of this flow in the appropriate growth pattern was forecast regarding yield discount rate which was demanded the stock of Coca-Cola Hellenic from the year 2012 to 2014. Finally, the intrinsic value of Coca-Cola Hellenic will be calculated using the sum of 3 anticipated Free Cash Flow to Equity plus the end value of the company at t=3. Dividing the total value of equity by the number of outstanding shares gives the value of its stock.