IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2013 you initiate discussions with IDX's founder about the possibility of acquiring the business. Estimate the value of IDX per share using a discounted FCF approach and thr following idea.
Debt: $39 million
Excess cash: $112 million
Shares outstanding: 50 million
Expected FCF in 2014: $40 million
Expected FCF in 2015: $51 million
Future FCF growth rate beyond 2015: 5%
Weighted-average cost of capital: 9.4%
The enterprise value in 2013 is $ ______ million. (round to nearest integer)
The equity value is $______ million. (round to nearest integer)
The value of IDX per share is $_____. (round to nearest cent)
