We can build a DCF to get a target Mkt Cap either using FCFF and deducting net debt at the end, or directly calculate a target mkt cap using discounted FCFE. For the FCFF we discount with a WACC and for FCFE with the cost of equity. But anyone who can DCF will know this gives different results. Does anyone know why / which is correct?
Thanks
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DCF - FCFE or FCFF?
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