Upstart Holdings, Inc. has 1.62 million common shares outstanding and no outstanding long-term debt or preferred stock. Upstart Holdings, Inc.’s free cash flows at the end of the next three years will be $24.37 million, $ 36.16 million, and $ 54.86 million, respectively. The appropriate discount rate for this free cash flow stream is 11.12% per year. After Year 3, it is projected that free cash flow will grow at 2.7 % percent per year. Further, it is estimated that at the end of the third year, Upstart Holdings, Inc. will be worth 12 times its year three free cash flow. Assuming that Upstart Holdings, Inc.’s terminal value is based on the cash flow multiple method, what is the Upstart Holdings, Inc.’s current value per share?
3.
Upstart Holdings, Inc. has 1.62 million common shares outstanding and no outstanding long-term debt or
After Year 3, it is projected that free cash flow will grow at 2.7 % percent per year.
Further, it is estimated that at the end of the third year, Upstart Holdings, Inc. will be worth 12 times its year three free cash flow.
Assuming that Upstart Holdings, Inc.’s terminal value is based on the cash flow multiple method, what is the Upstart Holdings, Inc.’s current value per share?
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