Actual vs Potential Dividends

With this excel model, you can:

1. To compare how much a firm has returned to its stockholder historically (up to 10 years) with how much it could have returned.

2. To provide an assessment of project quality (ROE compared to cost of equity) and stock price performance over the period.

3. To provide forecasts of how much cash the firm will have available for stock buybacks in the future

Free Cash Flow to Equity = the cash flow left over after net debt payments, net capital expenditures and working capital investments

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)